UnionBank prices stock rights offering at P64.81
UNION BANK of the Philippines, Inc. (UnionBank) has set the price for its stock rights offering (SRO) from which it eyes to raise P40 billion to fund its acquisition of the local retail arm of Citigroup, Inc.
In a filing with the local bourse on Tuesday, the Aboitiz-led lender said that 617.188 million shares will be offered at P64.81 apiece.
“The offer price was determined based on the 15-day volume-weighted average price of the bank’s common shares traded on the exchange, subject to a discount of 30%,” UnionBank said.
The offering will run from April 25 to May 6. Meanwhile, the tentative listing date for the shares is on May 16.
UnionBank earlier said their key shareholders such as Aboitiz Equity Ventures, Insular Life Assurance and Social Security System, are fully committed to the stock sale.
The lender has said the P55-billion acquisition deal with Citi could boost the local lender’s retail banking industry.
The acquisition deal also includes Citi’s real estate interests in relation to Citibank Square in Eastwood, three full-service bank branches, five wealth centers and two bank branch lites.
UnionBank’s net income increased by 9% to P12.6 billion in 2021 from a year earlier amid higher revenues and the decline in loan loss provisions.
Its shares closed at P101.50 apiece, gaining P2.20 or 2.22% from the previous day’s finish. — Luz Wendy T. Noble
