November 12, 2024 | 12:00am
MANILA, Philippines — Aboitiz-led Union Bank of the Philippines is spending P300 million to acquire a 27.5-percent stake in ATR Asset Management Inc. (ATRAM), resulting in a merger that will combine their respective trust subsidiaries.
Under the terms of an investment agreement, ATRAM’s existing shareholders will retain the remaining 72.5 percent.
The partnership will lead to a merger between Union Bank Investment Management and Trust Corp. (UBIMTC) and ATRAM Trust Corp., with ATC as the surviving entity.
The consolidation leverages the strengths of both UnionBank and ATRAM to create a leading player in the trust industry with combined assets under management (AUM) exceeding P485 billion, based on the latest data.
“This partnership allows us to strengthen our offerings and provide even more tailored services to our customers, especially our larger Wealth client base as a result of the acquisition of Citibank Philippines’ consumer banking business,” UnionBank president and CEO Edwin Bautista said.
“We are committed to ensuring they have access to the best financial solutions available while also creating broader career opportunities for our employees in a larger and very dynamic organization,” Bautista said.
UnionBank and ATRAM entered into an investment agreement on Nov. 8 for the bank’s acquisition of ATRAM’s shareholdings. It also entered into a share purchase agreement for the sale of 100 percent of the Aboitiz-led bank’s shares in UBIMTC to ATRAM.
To implement the transaction, UnionBank will acquire 82.97 million shares of ATRAM at P3.61 per share while selling all 300 million shares of UBIMTC at one peso per share.
UnionBank will pay P67.5 million to ATR KimEng AMG Holdings, Inc. for 25 million common shares. It will also pay P232.5 million to ATRAM for the rest of the 57.97 million shares.
The P300 million needed for this will come from the proceeds of the UBIMTC sale.
“This merger represents a milestone for ATRAM as we align with UnionBank, a leader in digital innovation,” ATRAM CEO Michael Ferrer said. “Together, we will change the game and redefine the asset management landscape in the Philippines.”
“Our clients will benefit from an expanded suite of investment solutions, enhancing the value and the service we deliver,” he added.
The investment and merger are subject to regulatory approvals. It will also follow a thorough evaluation process to ensure smooth integration that prioritizes client service and employee well-being.
AlphaPrimus Advisors acted as financial advisor to ATRAM while Exchange Equity Partners served as financial advisor to UnionBank.
ATRAM is engaged in asset management and investment advisory services, managing portfolios that include mutual funds, trust assets, insurance portfolios and real estate for both proprietary and third-party clients.
UBIMTC, a wholly owned subsidiary of UnionBank, is a full-service trust corporation offering bespoke trust and investment solutions such as trusteed accounts, investment management services, escrow agency, custodianship and other fiduciary services.
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