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October 07, 2022

UnionBank sets stock rights offer price at P64.81 per share

Union Bank of the Philippines led by bankero Edwin Bautista priced its stock rights offering at P64.81 per share.

The price, at the lower end of the price range of between P64.55 and P73.78 per share, was determined based on the 15-day volume-weighted average price of the bank’s common shares traded on the Philippine Stock Exchange (PSE), subject to a discount of 30 percent.

Eligible shareholders as of record date April 11 are entitled to one right share for every 2.4707 shares owned. Offer period will start on April 25 and end on May 6 and the tentative listing date is on May 16.

The Aboitiz-led bank will offer 617.19 million shares and raise P39.84 billion to partially fund the acquisition of the retail banking business of global banking giant Citigroup Inc. in the Philippines.

Existing shareholders including Aboitiz Equity Ventures (AEC), The Insular Life Assurance Co. Inc., and pension fund manager Social Security System (SSS) committed to fully subscribe to their respective allocations as well as to any shares not taken up by other shareholders.

The listed bank said the final price will be determined on April 4. It has tapped CLSA Exchange Capital Inc. and ING Bank NV Manila Branch as the joint global coordinators and joint domestic underwriters for the fund raising activity.

Late last year, UnionBank edged other big banks and is spending around P55 billion to complete the acquisition of Citi’s consumer banking segment in the country by the second half of the year.

The deal involves Citi’s credit card, personal loans, wealth management, and retail deposit businesses as well as real estate interests in relation to Citibank Square in Eastwood, three full service bank branches, five wealth centers, and two bank branch lite units.

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