Taiwan’s Cathay Financial enters Philippine banking sectorApril 21 2015 by InsuranceAsia News Staff
Taiwan’s Cathay Financial Holding Co has officially entered the Philippine banking sector by acquiring a 20% stake in Rizal Commercial Banking Corp (RCBC).
The acquisition was carried out by Cathay Life Insurance Corp, a subsidiary of Cathay Financial, which finalized a deal to acquire the 20% stake of RCBC worth Php7.95bn (US$179m).
RCBC, established in 1960, is the fifth-largest bank in the Philippines by assets.
The Taiwanese group bought out old shareholders and subscribed to new capital after the investment received approval from Taiwanese regulators last week, said RCBC.
In a disclosure, RCBC said the 20% acquisition was part of Cathay’s plan to expand its business in Southeast Asia, and that taking Cathay on as a partner was part of RCBC’s capital-raising strategy to comply with the new tougher regulations.
The bank also told the Philippine Stock Exchange that the proceeds from the investment will continue to support the growth of RCBC.
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