UNION BANK of the Philippines, Inc. (UnionBank) established the price of its stock purchase rights offering (SRO) from which it plans to raise 40 billion pesos to finance its acquisition of the local retail arm of Citigroup, Inc.
In one Ifon the local stock exchange on Tuesday, the Aboitiz-led lender said 617.188 million shares will be offered at P64.81 each.
“The offer price was determined based on the 15-day volume-weighted average price of the bank’s publicly traded common stock, subject to a 30% discount,” UnionBank said.
The offer will run from April 25 to May 6. Meanwhile, the provisional listing date for the shares is May 16.
UnionBank said earlier that its major shareholders, such as Aboitiz Equity Ventures, Insular Life Assurance and Social Security System, were fully committed to the stock sale.
The lender said the 55 billion peso acquisition deal with Citi could boost the local lender’s retail banking sector.
The acquisition agreement also includes Citi’s real estate interests in connection with Citibank Square in Eastwood, three full-service bank branches, Iffive wealth centers and two bank branches.
UnionBank’s net income rose 9% to 12.6 billion pesos in 2021 from a year earlier, amid higher revenues and lower loan loss provisions.
Its shares closed at P101.50 each, gaining P2.20 or 2.22% from the previous day. Iffinished. — Luz Wendy T. Noble