This time, Security Bank acquires Premiere Bank

This time, Security Bank acquires Premiere Bank

THURSDAY, 02 JUNE 2011 20:00     MIGUEL R. CAMUS / REPORTER 
 
LISTED Security Bank Corp. is taking a 98-percent stake in the privately held Premiere Development Bank in an all- cash transaction valued at P1.3 billion, the lender announced on Thursday.

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

The new deal, still subject to regulatory approvals, will boost Security Bank’s network by a third, or additional 38 branches in Metro Manila, Bulacan, Rizal, Laguna, Cavite and Batangas.

The transaction will also swell its depositor base by another 37,000 with an estimated P4.5 billion in deposits while loan accounts will increase by about P3 billion, the statement said.

“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 chief executive officer Alberto S. Villarosa.

The major selling shareholders in the deal 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 $3 billion in funds under 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,” Premiere Bank president and CEO Herminio M. Famatigan Jr. said in a separate statement.

The transaction was priced at 1.6 times the book value of Premiere Bank as of December 2010, the statement showed. Security Bank said it plans to acquire the remaining 2 percent of Premiere Bank that it does not yet own.

Premiere Bank was incorporated in 1960 by Dr. Procopio C. Reyes under the name of Pasay City Development Bank.

Security Bank, which turns 60 this year, saw its shares decline 0.43 percent to P92.70 each on Thursday’s close.

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