METROBANK FUNDRAISING TO COMPLETE MCC BUYOUT

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In a disclosure, the company said its board had approved the conduct of a stock rights offer via the issuance of 819.8 million common shares, “which is equivalent to the remaining unissued shares from the Bank’s authorized capital stock.”

“Timing and size of the transaction are subject to other details such as the offer price and are subject to receipt of regulatory approvals as well as market and other conditions,” it said.

Metrobank said a portion of the proceeds would be used for the acquisition of the remaining 20 percent stake in MCC.

In October last year, the bank announced it was buying out the 40 percent stake in MCC held by its joint venture partner, ANZ Funds Pty. Ltd., for a consideration of P14.8 billion.

On December 29, the bank received approval from the Bangko Sentral ng Pilipinas (BSP) for the buyout, allowing it to proceed with the purchase of a 20 percent stake in MCC for P7.4 billion. The purchase of the remaining 20 percent is set to be completed by the third quarter this year under the same terms.

Placido Mapa, vice president and head of Investor Relations at Metrobank, earlier said this move would allow Metrobank to “lever MCC.”

The Metrobank-ANZ joint venture started operations in 2003 with Metrobank holding 60 per- cent and ANZ holding the remaining 40 percent.

The bank said funds raised from the stock rights offer would also allow Metrobank to sustain its loan growth momentum.

“The Bank believes that the robust growth of the Philippines will continue to support the prospects for accelerated loan expansion across the various segments of the economy,” it said.

“The capital raising exercise is expected to enable the bank to pursue these business prospects to sustain the loan growth momentum, leveraging on the bank’s sales and distribution network that has rapidly expanded in the preceding years,” it said.