UnionBank subsidiary CitySavings to acquire Ropali’s PR Savings Bank
CITY SAVINGS Bank, Inc. (CitySavings), the thrift banking arm of Aboitiz-led UnionBank of the Philippines (UnionBank) is set to acquire Philippine Resources Savings Banking Corp. (PR Savings) of the Ropali Group.
In a disclosure to the Philippine Stock Exchange yesterday, CitySavings said it has signed a share purchase agreement with the Ropali Group to acquire 100% of the common shares of PR Savings.
The purchase agreement was signed by Ropali Group chairman and founder Roberto P. Alingog and CitySavings Bank chairman and UnionBank executive vice-president Eugene S. Acevedo.
“This acquisition will expand our mass market reach, consistent with our vision to promote inclusive growth in the country,” UnionBank President and incoming Chief Executive Officer Edwin R. Bautista was quoted as saying in the statement.
The transaction, which will need to undergo closing conditions and secure regulatory approval, is targeted to be finished by the second quarter.
PR Savings Bank is the 15th largest thrift bank in the country in asset terms as of September 2017 with P13.2 billion. The Isabela-based bank, which started its operations in 1977 as Rural Bank of Naguilian (Isabela), Inc., operates 46 branches and 56 other banking offices.
The lender is focused on motorcycle, agri-machinery and teachers’ salary loans, serving over 131,000 borrowers, mostly from the mass market segment.
“The acquisition represents exciting new opportunities for CitySavings to substantially expand its reach in Luzon, as well as enter new market segments such as motorcycle and agri-machinery financing,” the statement read.
PR Savings is part of the Ropali Group of Companies, a mid-sized conglomerate with focus on motorcycles and agricultural machinery.
Ropali Group also owns five rural banks, which include Agribusiness Rural Bank, Inc., Rural Bank of Madela (Quirino), Inc., Emerald Rural Bank, Banco Alabang, Inc., and Farmers Savings And Loan Bank, Inc.
This acquisition will help bolster the operations of CitySavings Bank, which is the sixth largest thrift bank in the country as of September 2017, with assets amounting to P71.7 billion. — K.A.N. Vidal
