City Savings Bank Inc. (CitySavings), the thrift banking arm of Union Bank of the Philippines (UnionBank, PSE: UBP), has signed a Share Purchase Agreement (SPA) with the ROPALI group to acquire 100% of the common shares of Philippine Resources Savings Bank (PR Savings).
“This acquisition will expand our mass market reach, consistent with our vision to promote inclusive growth in the country,” said UnionBank President and incoming CEO Edwin R. Bautista.
The SPA was signed by ROPALI group chairman and founder Roberto P. Alingog and CitySavings Bank Chairman and UnionBank Senior Executive Vice President Eugene S. Acevedo.
PR Savings Bank is a member of the Ropali Group of Companies, a mid-sized conglomerate that is a leading player in the motorcycle and agricultural machinery trade.
The Isabela-based bank is the 14th largest thrift bank in the country, with assets of PhP12.917 billion. It has 102 offices, mostly in Luzon. The bank is presently engaged in extending motorcycle, agri-machinery, and teachers’ salary loans, serving over 131,000 borrowers, mostly from the mass market segment.
The acquisition represents exciting new opportunities for CitySavings to substantially expand its reach in Luzon, as well as enter new market segments such as motorcycle and agri-machinery financing.
This is also in line with the Bangko Sentral ng Pilipinas’ (BSP) efforts to improve financial inclusion in the country and strengthen the banking industry through mergers and consolidation. The transaction is subject to closing conditions and regulatory approval, targeted by the second quarter of 2018.