CS Capital Investment Pte. Ltd., a wholly-owned subsidiary of Hong Kong-listed CSC Holdings Limited (CSC), is acquiring a 26.80-percent stake in Citystate Savings Bank (CSB), a thrift bank owned by Cabangon family for P736 million.
CSB said in a disclosure to the stock exchange Monday it received a notice that certain stockholders of the company signed a share purchase agreement with CS Capital.
Under the deal, CS Capital will acquire CSB shares at P16.97 apiece, subject to any applicable adjustments provided that the total purchase price would not exceed P750 million.
The acquisition price represents a 185-percent premium over the stock’s closing price of P5.96 Friday. As a result, the share price of CSB hit the ceiling, rising by 50 percent to P8.94 Monday.
“The entry of CSC establishes a strategic partnership between the controlling shareholders and of the bank and CSC, whereby the bank will benefit from the global experience, market reach and technological resources of CSC, in line with the mandate of the Bangko Sentral ng Pilipinas [BSP] and the bank’s own direction towards digitalization,” CSB said
The deal is subject to certain closing conditions, including the approval by the Monetary Board and the BSP.
CSC said the purchase price was arrived at after considering the bank’s net asset value of P1.4 billion as of end-December 2023. The bank operates 34 branches, most of which are located in Metro Manila.
CSC said in a disclosure to the Hong Kong Stock Exchange it has been actively looking for investment opportunities to broaden the scope of investments.
“The acquisition is a strategic investment of the company and represents the company’s first step to implement financial business investment strategy,” CS Capital said.
“It also represents the effort of the group to enter into mainstream financial business world and lays out the business map for the group in Southeast Asia, which has a great development potential,” it said.
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