CITYSTATE Savings Bank Inc. said it had received notice that certain shareholders have entered into a share purchase agreement (SPA) with Singapore-based CS Capital Investment Pte. Ltd., an indirect wholly-owned subsidiary of CSC Holdings Ltd. (CSC).
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, the bank said the entry of CSC “establishes a strategic partnership between the controlling shareholders of the bank and CSC.”
The bank noted that they will benefit from the global experience, market reach, and technological resources of CSC.
In a separate filing submitted by CSC to the Hong Kong Exchanges and Clearing Limited (HKex), the company said it will acquire 26.8 percent or 43.362 million of all the issued and outstanding capital stock of CityState for over P735 million, subject to adjustment, provided that the aggregate consideration for the purchase will not exceed P750 million.
The final price is still subject to change subject to terms and conditions of the SPA.
“The purchase price will be settled in cash and funded by the internal financial resources of the Group,” CSC said.
CSC said that they have been “actively considering and exploring various opportunities for investment projects and to broaden the scope of investment according to the market conditions with an aim to enhance shareholders’ value.”
“The acquisition is a strategic investment of the Company and represents the Company’s first step to implement financial business investment strategy,” CSC added.
CityState shareholders that will be bought out by CS Capital are pre-need firm Eternal Plans, Inc., broadcasting firm Aliw Broadcasting Corp., and investment firms AMB, ALC Holdings and Management Corp. and Top Ventures Investments and Management Corp.
These companies held a total of 18.336 million shares or 11.33 percent of the planned acquisition.
CityState founder Antonio Cabangon-Chua holds the highest shares among the listed shareholders to be bought out, with more than 14 million shares or 8.72 percent shareholdings in CityState.
“The completion of the transaction is subject to certain closing conditions, including the approval of the Monetary Board of the [Bangko Sentral ng Pilipinas],” CityState said.
On Monday, shares of CityState rose by P2.98 to close at P8.94 apiece.
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