Banco de Oro eyes acquiring PBCom’s 67% stake

BDO emerged as the second bidder of PBCom after ISM Communications.

Mid-sized Philippine Bank of Communications disclosed on Tuesday it has a second suitor keenly interested in its network of 64 branches and 41 automated teller machines (ATMs).

“We confirm that Banco de Oro (BDO) has submitted a proposal to invest in PBCom," corporate secretary Bernard B. Lopez said in a disclosure to the Philippine Stock Exchange.

The other publicized suitor of PBCom is ISM Communications of Marcos-era Trade Minister Roberto V. Ongpin.

Nationwide, BDO has 726 operating branches, including one in Hong Kong, and 1,430 ATMs. As of end-March, its resources totaled P955.37 billion ($22.01 billion). BDO’s first quarter net income after tax this year reached P2.46 billion ($56.67 million).

PBCom reported its operating income in the first quarter was P507 million ($11.67 million), with a net income of P71 million ($1.63 million), and cash amounting to P329.5 million ($7.6 million). Its latest balance sheet showed assets of P 39.55 billion ($911.72 million) and liabilities of P36.42 billion ($839.56 million).

The Philippine Deposit Insurance Corp. (PDIC) extended emergency financial assistance to PBCom in 2004. PDIC earlier said the P7.6 billion ($175.19 million) it loaned PBCom is fully-collateralized by government securities so that “public interest is safeguarded at all times."

View the full story in GMA News.