SMFL to buy 30% stake in RCBC leasing arm

SUMITOMO Mitsui Finance and Leasing Co., Ltd. (SMFL) is set to buy a 30% stake in the leasing arm of Rizal Commercial Banking Corp. (RCBC).

SMFL has entered into an agreement to acquire an equity stake in RCBC Leasing and Finance Corp. (RLFC) via a third-party share issuance, RCBC said in a disclosure to the stock exchange on Wednesday.

“This new partnership brings together SMFL’s knowledge and expertise from its global presence with RLFC’s operations and RCBC’s local network to more effectively capitalize on the various opportunities arising form the Philippines’ strong economy,” the bank said.

SMFL and RLFC are working towards finalizing definitive transaction agreements, it added, which would depend on the deal’s terms and conditions and regulatory approval.

“This transaction also aligns with the multi-franchise strategy of Sumitomo Mitsui Financial Group, Inc. (SMFG), which seeks to solidify SMFG’s presence in high-growth areas such as India, Indonesia, Vietnam, and the Philippines by establishing new business bases in these areas,” RCBC said.

SMFG’s subsidiary Sumitomo Mitsui Banking Corp. purchased an additional 15% stake in RCBC in 2023, which brought its total shareholdings to 20% of the listed lender.

RCBC shares rose by 10 centavos or 0.4% to end at P25.25 each on Wednesday. — BVR