Unionbank will pay in cash the net assets of Citi Philippines’ retail banking business, plus a premium of 45.3 billion pesos, or about $ 908 million, Citigroup said in a separate statement.
The transaction includes Citi’s business in credit cards, personal loans, personal wealth management and deposits, as well as real estate assets.
At the end of June, Citi’s retail banking activities in the Philippines represented total assets of 89.5 billion pesos, including gross loans of 59.7 billion pesos, total liabilities of 71.7 billion pesos. pesos, including deposits of 67.8 billion pesos, and a customer base of nearly one million.
The acquisition, which is expected to be finalized in the second half of 2022, will be funded by a combination of in-house resources and a share rights offering, Unionbank said.
“We look forward to this game-changing opportunity to grow our credit card business and significantly expand our banking business in the high-end segment of the consumer market,” said Edwin Bautista, President and CEO of Unionbank, in a press release. ($ 1 = 50.1100 Philippine pesos) (Reporting by Neil Jerome Morales and Enrico Dela Cruz; edited by Ed Davies)