FIRST Metro Investment Corp., the investment banking arm of Metropolitan Bank and Trust Co. (Metrobank), on Wednesday said that its board had approved the sale of its 70-percent stake in fund manager First Metro Asset Management, Inc. (FAMI) to the ATRAM Group.
The buyers consist of the group’s parent company, ATRAM Investment Management Partners Corp. and MET Holdings, Inc. (MET).
First Metro said the transaction with ATRAM was part of its business strategy to focus on investment banking.
“The ATRAM Group is a reputable and respected player in the industry for its expertise in fund management,” First Metro President Anthony Ocampo said.
“We are confident that it can carry out what we have started in FAMI and even bring the company to greater heights,” he added.
ATRAM is one of the leading independent asset management firms in the country, with over P385 billion in assets under management.
First Metro said a share purchase agreement would be executed between First Metro and MET, with completion contingent upon the fulfillment of conditions specified in the agreement.
“FAMI is a valuable acquisition for us as we aim to expand our fund management operations in the country,” ATR Holdings President and ATRAM Trust Corp Chairman Manuel Tordesillas said.
“It is a strategic business move given its mix of funds,” he added.
For FAMI, the entry of ATRAM Group will not affect its current leadership team to ensure continuity and stability of its operations. FAMI said that quality of service would also remain unchanged.
In a separate disclosure, Aboitiz-led Union Bank of the Philippines confirmed to the stock exchange that it was in talks with ATRAM for the merger of its trust businesses, with ATRAM as the surviving entity.
“There are ongoing discussions between the parties in relation to the… news article in so far as they pertain to UnionBank, but nothing has been finalized,” UnionBank said in a filing.
“The bank will make disclosures as and when appropriate,” it said.
Metrobank shares on Wednesday rose P3.95, or 5.23 percent, to P79.45 apiece, while shares of UnionBank grew P1.20, or 3.28 percent, to P37.75 apiece.
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