Metrobank buys out partner in credit card joint venture

Ty-led Metropolitan Bank & Trust Co. (Metrobank) spent another P7.4 billion to complete the buyout of its foreign joint venture partner in the country’s leading credit card provider.

The country’s second largest lender informed the Philippine Stock Exchange (PSE) it acquired the remaining 20 percent stake of ANZ Funds Pty Ltd. in Metrobank Card Corp. (MCC).

The transaction involved the acquisition of ANZ Funds’ 200 million MCC shares at P37 per share.

“The final transaction brings Metrobank’s ownership in MCC to 100 percent and likewise completes the full handover from ANZ as Metrobank assumes 100 percent responsibility over MCC operations,” the listed bank said.

Last October, Metrobank entered into an agreement to acquire the 400 million shares or 40 percent interest of ANZ Funds in MCC for P14.8 billion.

Initially, Metrobank spent P7.4 billion to acquire ANZ Funds’ 20 percent stake involving 200 million shares at P37 per share last Jan. 8.

Proceeds of the bank’s P60 billion stock rights offering in January were used to partially finance the acquisition.

MCC was established in August 1985 and was then known as Unibancard Corp. In 2003, Metrobank entered into a joint venture agreement with Australia and New Zealand Banking Group Ltd. through ANZ Funds for the operation of the credit card business of MCC.

The Ty-led bank controlled MCC with a 60 percent stake, while ANZ owned the remaining 40 percent.

The listed bank said the acquisition would allow Metrobank to recognize additional earnings from MCC and at the same time improve operational efficiencies of both companies.

It added the transaction is also in line with Metrobank’s capital planning initiatives.