Bank of the Philippine Islands (BPI) is set to take full control of BPI Globe BanKO, Inc. (BanKO) after buying the shares held by
Globe Telecom, Inc. and Ayala Corp. in the joint venture.
The bank inked the agreement for the turnover with
Globe and Ayala, and
BPI will assume
full ownership of the
mobile-based bank by yearend, the listed
lender said in a disclosure to the
Philippine Stock Exchange yesterday.
“
BPI will increase its stake in BanKO by buying the shares of Globe and Ayala Corp. representing 40% and 20%, respectively. BPI currently owns 40% of BanKO,” it said in its regulatory filing. The agreement will be subject to requisite corporate and regulatory approvals, including business requirements like the issuance of a “fairness opinion” on the share valuation, it added.
BanKO was established in 2009 as a partnership between
BPI, Globe Telecom, and Ayala. Despite the change in shareholder structure, BPI noted its commitment to inclusive growth, saying BanKO will continue to provide broader and more competitive access to funds and ensure critical
financial services to the underbanked.
BPI President and Chief Executive Officer Cezar P. Consing said: “
We take this opportunity to thank our partners for giving us yet another opportunity to give access to funds and other banking services to clients who, otherwise, would not have been able to bridge their personal financial needs and jumpstart their ventures...”
“
Over the next few months, we will be in the process of transitioning BanKO within the BPI group and it is our goal to continue providing the highest level of service during this time,” Mr. Consing said.
Globe President and CEO Ernest L. Cu, for his part, said the mobile phone company will continue to explore non-traditional avenues in
microfinance by leveraging on its telecommunications infrastructure and
mobile money platform, … complementing the efforts of BPI and BanKO.”
Ayala Corporation CEO and Chairman Jaime Augusto Zobel de Ayala added: We believe that BPI’s assumption of full control and ownership of BanKO is an important step in the continued effort of the Ayala group to provide access to essential financial services to the unbanked segments of our population. BPI will now be properly positioned to pursue traditional
microfinance lending within existing regulatory frameworks.
“With this transaction and Globe’s separate, but complementary, efforts to develop and provide innovative microfinance solutions, the Ayala group will continue to deliver extensive and innovative microfinance solutions to a broader segment of the Philippine population,” the official was quoted as saying.
