CIMB Group Holdings Bhd., the largest company on Bursa Malaysia, has taken control of Bank of Commerce, an affiliate of San Miguel Corporation.
CIMB bought a 60% stake in BankCom for US$288.4 million in cash. The buy-in give Malaysia’s second largest bank by assets a foothold in the rapidly-growing Philippine banking sector.
CIMB Group Chief Executive Nazir Razak said CIMB bought the BankCom shares from San Miguel Properties Inc., San Miguel Corporation Retirement Plan and Q-Tech Alliance Holdings Inc. that collectively own 98.5% of the bank.
After the stake purchase, San Miguel Corporation’s Retirement Plan will remain the largest minority shareholder in BankCom with a 27% stake.
“As an ASEAN universal bank, this extension into the Philippines is a very natural one. I believe we are entering this market at the right time, with the right deal and right partner,” Razak said.
Razak also noted that CIMB expects to complete the acquisition by the end of third quarter and expects the deal to contribute to earnings starting 2013.
The deal to buy the majority stake in BankCom came a month after CIMB acquired part of Royal Bank of Scotland Group PLC’s cash equities and associated investment banking businesses in ASEAN as part of its plan to become a pan-Asian bank.
CIMB is also in talks with RBS to acquire its 50% stake in Australia-based RBS Morgans.
San Miguel Corporation is Southeast Asia's largest publicly listed food, beverage and packaging company with over 100 major facilities throughout the Asia-Pacific.
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