The Market Monitor Minding the Nation's Business
By Riza Lozada
Listed Philippine Business Bank Inc. (PBB) had spent P200 million for branch license acquisition in accordance with its prospectus for its initial public offering (IPO) conducted in 2013 that raised P3.008 billion.
PBB attached the Reports on Factual Finding conducted by P&A Grant Thornton, validating that, as of September 30, PBB fully utilized the P200 million from the IPO proceeds allocated for the acquisition of the branch license.
The report said the PBB board approved the acquisition of the branch license of the Insular Savers Bank by utilizing the IPO proceeds for the bank acquisition completed during the quarter ending September 30.
The acquisition has an agreed purchase price of P518.24 million with PBB directly paying the shareholders of Insular P101.15 million, and with the balance of P417.10 million deposited with an escrow agent.
“As of September 30, 2015, a total of P105.13 million has been released from the escrow fund as payment for Insular. Hence, the bank fully utilized the P200 million from the IPO proceeds allocated for the acquisition of the branch license,” PBB said in its report to the bourse.