The Bangko Sentral ng Pilipinas (BSP) has approved the merger of thrift banks City Savings Bank, Inc. and Philippine Resources Banking Corporation (PR Savings Bank), with City Savings as the surviving entity.
City Savings, a wholly-owned subsidiary of Aboitiiz-owned Union Bank of the Philippines, now 100% owns PR Savings.
The acquisition is in line with the company’s goal to expand its mass market reach consistent with its vision to promote inclusive growth in the country, according to a UnionBank disclosure on Thursday, December 27, 2018.
PR Savings started as a rural bank in Isabela province in Cagayan Valley. It was upgraded to a savings bank in 2011, with around 40 branches in key areas mostly in Luzon.
City Savings signed a Share Purchase Agreement with the owners of common shares of PR Savings in December 2017 and another SPA with the International Finance Corporation, which held 65 million preferred shares in PR Savings, in February 2018.
In June 2018, the central bank approved City Savings’ acquisition of 100% of the issued and outstanding common shares of stock in PR Savings. It also approved in principle the merger of the two thrift banks.
City Savings said it received a letter from the BSP about the approval of its merger with PR Savings on December 27, 2018. (Ventures Cebu)