12 November 2013
GIC Private Limited (GIC) and Ayala Corporation have acquired DBS Bank Ltd’s (DBS) remaining ownership interest in Ayala DBS Holdings, Inc. (ADHI). The stake is equivalent to a 9.9% indirect ownership stake in the Bank of the Philippine Islands (BPI). Through this transaction, GIC and Ayala will effectively acquire 5.6% and 4.3% in BPI, respectively.
GIC and Ayala purchased unlisted ADHI shares for a total transaction value of P29.6 billion. GIC’s investment is recognition of BPI’s long-term value and the Philippine economy’s strong fundamentals and growth prospects. Ayala’s total ownership in BPI will increase from 44.0% to 48.3%.
DBS CEO Piyush Gupta said, “DBS has been a strategic investor in BPI since 1999. This divestment is in line with DBS’ focus on its core markets. We are pleased to have been part of BPI’s growth in the Philippines over the last decade and have a productive relationship with the Ayala Group. We believe that the transaction will have a positive outcome for all parties.”
Ayala Chairman and CEO Jaime Augusto Zobel de Ayala said, “We thank DBS for the 14 years of partnership and support in BPI which undoubtedly contributed to BPI’s continued position as the premier financial institution in the Philippines.” Mr. Zobel added, “Moving forward, we are delighted to have GIC as part of the shareholder group of BPI. GIC and Ayala both have a solid track record for making long-term investments and this partnership speaks to an alignment of values and goals as shareholders. The entry of GIC also ensures the continuity of a stable and committed shareholder base for BPI.”
Ayala President and COO Fernando Zobel de Ayala noted, “This acquisition is both a value and earnings accretive investment for Ayala. BPI has been a significant growth driver for Ayala over the years and we believe its earnings growth momentum will continue in step with the expansion of the Philippine economy.”
Last week, BPI announced it will raise capital of up to P25 billion by way of a rights offering. Ayala and GIC, through ADHI, intend to support this initiative.