SECURITY Bank Corp. on Tuesday listed on the Philippine Stock Exchange (PSE) 150.7 million in new common shares it had issued to Japan’s Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU) for a stake in the midsized bank.
The transaction was completed in less than six months since the deal was signed in January this year.
The transaction received regulatory approval on February 24, and was completed on April 1, with the equity investment of P36.9 billion by BTMU in Security Bank. Security Bank then issued 150.7 million common shares, at P245 per common share, and 200 million preferred shares, at P0.10 apiece, to BTMU.
To date, this equity investment is the largest foreign direct investment in a Philippine financial institution, the company said.
“We thank the Bangko Sentral ng Pilipinas and the PSE for their vital support of the Security Bank-BTMU strategic partnership. The partnership gives Security Bank—as an equity affiliate of BTMU—additional capabilities to service key critical requirements of our economy. These capabilities are in the areas of infrastructure and project finance, retail finance, international banking and wealth management. BTMU’s parent, Mitsubishi UFJ Financial Group, is one of the world’s largest and most diversified financial groups with core strengths in such areas,” said Alberto Villarosa, board chairman of Security Bank.
BTMU is the second-largest shareholder of Security Bank. The Dy Group is the biggest shareholder with majority voting control. Today’s listing brought Security Bank’s total listed stock to 753.53 million common shares. Security Bank’s market capitalization—or how much the investor market values the bank—is around P150 billion, equivalent to $3.2 billion. The company’s stock price traded in the P198 to P200-per-share range in recent days.
Security Bank’s shareholders’ capital was at P92.9 billion, the country’s fifth largest among private domestic universal banks in the country.
SECB’s book value per share was at P123.29 pro-forma as of April 1, the company said.