Pasay–(PHStocks)–Allied Banking Corp. (ABC) and Philippine National Bank (PSE: PNB) separately held Special Stockholders’ Meetings approving the amended terms of the Plan of Merger of the two banks. The merger is targeted to take effect in the second quarter of 2012 after securing all necessary approvals from the regulators.
The merger will be effected via a share-for-share exchange. Under the approved terms, PNB will be the surviving entity. It will issue to ABC shareholders 130 PNB shares for every ABC common share; and 22.763 PNB shares for every ABC preferred share. PNB shares will be issued at PhP70.00 per share.
Upon merger, PNB will be the 4th largest private domestic bank in the Philippines with a combined distribution network of 650 branches nationwide and total assets of over PhP500 billion. It further strengthens its overseas presence as the bank with the largest international footprint across Asia, Europe, the Middle East and North America.
In recent months, both banks have undertaken steps to ensure that no customer will be inconvenienced by the operational changes related to the merger. The merged bank will have a stronger platform to deliver best value to its combined customer base. An Integration Team led by ABC President Anthony Q. Chua was formed to oversee merger preparations.
ING Bank N.V. is acting as financial advisor to the major shareholders of both banks. UBS is acting as financial advisor to the Board of Directors of PNB.