YUCHENGCO-LED Rizal Commercial Banking Corp. (RCBC) has obtained the
approval of the Bangko Sentral ng Pilipinas (BSP) for its purchase of a
100% stake in First Malayan Leasing Finance Corp. (Malayan Leasing),
another subsidiary of the same group of companies.
In separate disclosures to the stock exchange on Monday, RCBC and the
House of Investments, Inc. said the central bank on March 15 approved
the "request of RCBC for authority to acquire 100% ownership in [Malayan
Leasing] from its selling shareholders and to infuse P163.2 million in
new capital into [Malayan Leasing]."
The House of Investments held a 45.11% share in Malayan Leasing.
"We believe there is a strong prospect in the leasing business,
especially in the SME (small- and medium-scale enterprises) client base
of RCBC and we believe there will be opportunities and increased
interest from companies and high net worth individuals taking and
operating leases on vehicles," said John G. Deveras, RCBC executive
vice-president and head of strategic initiatives, in a phone interview
on Friday last week.
MORE AGGRESSIVE
The whole transaction -- including the infusion of the new capital -- is
worth about P710 million, Mr. Deveras said.
RCBC's acquisition of Malayan Leasing was approved by the latter's board
of directors in February 2005.
"The new capital will be used to fund the operations and innovations
that RCBC will do as we aim to be more aggressive in going after leasing
clients," he said.
Since RCBC will take over the management of Malayan Leasing only this
year, Mr. Deveras said, the commercial bank "does not expect Malayan
Leasing to significantly contribute to RCBC's income until 2013."
Malayan Leasing, he said, will be a separate subsidiary of the bank and
will be renamed "RCBC Leasing."
Malayan Leasing is a non-bank financial institution with quasi-banking
license. It serves the requirements of corporate, commercial and
consumer clients through loans, leases and investment products.
It became a subsidiary of the House of Investments in October 1995.
Malayan Leasing offers finance leasing; operating leasing; receivables
financing; inventory financing; fixed-assets financing; multi-purpose
salary loan; car financing; and money market placement.
EARLIER MERGERS
Last week, RCBC also secured the central bank's approval to merge its
two bank subsidiaries, the Rizal Microbank and Pres. Jose P. Laurel
Rural Bank, Inc., with the former as the surviving entity.
RCBC shares closed at P42.20 apiece yesterday, 0.12% or 0.05 centavos
less than their P42.25 finish on Friday last week. -- A. R. R. Gregorio
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