Security Bank acquires Premiere Development Bank

Security Bank acquires Premiere Development Bank

SECURITY Bank announced Thursday its acquisition of 98 percent the outstanding capital stock of Premiere Development Bank (PDB) and its intention to acquire the remaining two percent of outstanding shares.

The transaction was priced at P1.3 billion, or 1.6x book value of Premiere Bank as of December 2010.

PDB is a private development bank incorporated in 1960 by Dr. Procopio C. Reyes under the name of Pasay City Development Bank. Its head office is located at Edsa cor. Magallanes Avenue, Makati City.


The major selling shareholders of Premiere Bank include the Puyat-Reyes family, the Madrigal-Gonzales family and the Rohatyn Group, a New York-based private investment firm specializing in emerging markets with US$3 billion in funds under management.

Security Bank's acquisition of Premiere Bank is part of its strategic plan to expand its branch network, build its loan portfolio and expand its customer base.

"Combining our people and resources, our two banks will continue to grow and provide the exceptional customer service we've always been known for in the banking community," said Security Bank president and CEO Alberto S. Villarosa.

In a separate statement, PDB president and CEO Herminio M. Famatigan Jr. said: "The sale of Premiere Bank to Security Bank marks the culmination of a very effective partnership between The Rohatyn Group, the Puyat-Reyes family, the Madrigal-Gonzales family, and the bank's senior management.

The four-year partnership has grown Premiere Bank by three times in terms of assets and, in the process, produced considerable added value for its shareholders. At this stage of Premiere Bank's development, its shareholders are best served if the bank becomes part of a larger banking franchise."

The acquisition of Premiere Bank will complement Security Bank's existing operations with a loan portfolio estimated at P3 billion and 20,000 loan customers, 37,000 depositors with an estimated P4.5 billion in deposits.

Premiere Bank's branch network is comprised of 21 branches in and around Metro Manila, as well as 17 branches in the provinces of Bulacan, Rizal, Laguna, Cavite and Batangas.

Villarosa said "the purchase of Premiere Bank would immediately expand our branch network by 30 percent to 170 branches and effectively increase our presence and competitive stance in the consumer, small and mid-sized business segments."

The acquisition comes at the heels of Security Bank's recently forged joint venture establishing a leasing company with Marubeni Corp. of Japan.

Security Bank is celebrating its 60th anniversary this year. (PR)

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