Taiwan’s Cathay Life Insurance Co (Cathay Life) acquired a 20 per cent stake in the Philippines’ Rizal Commercial Banking Corp (RCBC) as both companies finally signed the long-awaited $178.7 million (P7.92 billion) share purchase deal on Wednesday, news reports said.
Cathay Financial president Lee Chang-Ken represented Cathay Life in the acquisition deal’s signing ceremony held at the RCBC headquarters in Makati City together with the bank’s president and CEO Lorenzo Tan.
The tie up is aimed at increasing growth opportunities for both companies. The key areas of synergy and collaboration involve capital injection, consumer banking, asset management, digital banking, corporate banking, and cross selling initiatives.
Credit Suisse AG acted as RCBC’s exclusive financial advisor, while Skadden, Arps, Slate, Meagher & Flom and Angara Abello Concepcion Regala & Cruz acted as the bank’s legal advisors on the transaction.
Based on the agreement, as reported by The Manila Bulletin, Cathay Life will subscribe to 124.2 million new RCBC shares, acquire 119.03 million RCBC shares from Hexagon Investments BV (an entity controlled by funds advised by CVC Asia Pacific Limited) and another 36.72 million RCBC shares from the International Finance Corporation.
RCBC in a statement said:”The closing of the transaction remains subject to relevant approvals from the regulatory authorities in the Philippines and Taiwan, and completion is expected by the end of the first quarter of 2015.”