Philippine Savings Bank, the thrift bank arm of the Metrobank Group, will sell 4 million shares worth P379.92 million in a motorcycle leasing company which it established eight years ago with Sumitomo Corp. (Japan) and Sumitomo Philippines.
PSBank said in a disclosure to the stock exchange it would sell 2 million shares in Sumisho Motor Finance Corp. and another 2 million shares of PSBank Retirement Fund in Sumisho Motor Finance Corp.
“PSBank has approved the sale of 2,000,000 SMFC common shares for the amount of P94.98 per share, or a total of P189,960,000.00 subject to the confirmation and acceptance of the purchase price and terms and conditions of the sale by the GT Capital Holdings Inc.,” it said. After the sale, PSBank would still own 6,000,000 shares in SMFC.
“PSBank Retirement Fund will also sell its entire shareholdings in SMFC consisting of 2,000,000 shares or the amount of P94.98 per share, or a total of P189,960,000.00 to GT Capital Holdings Inc.,” it said.
SMFC is a joint venture established by PSBank, PSBank Retirement Fund, Sumitomo Corp. (Japan) and Sumitomo Philippines. It was incorporated in 2009 to engage, transact or deal in the business of lending or leasing to retail customers for the purchase of motorcycles in the Philippines.
PSBanks said by selling the shares, it would improve its Tier 1 capital ratio and capital adequacy ratio”•a measurement of financial strength”•in line with its capital planning initiatives under Basel III.
“On the other hand, Sumisho Motor Finance Corp. will be able to harness GT Capital’s strength by developing synergies across various businesses within the group,” it said.
GT Capital is the holding company of the Metrobank Group. Metrobank owns 82.675 percent of PSBank.