CSC Holdings to buy stake in CS Bank of the Philippines for US$13 million
Acquisition, which is subject to regulatory approvals in the Philippines, is expected to be completed by the end of the year
Hong Kong-listed CSC Holdings, chaired by former Hang Seng Bank CEO Raymond Or Ching-fai, will buy a stake in Citystate Savings Bank (CS Bank) of the Philippines for 736 million pesos (US$13 million), in an effort to expand into Southeast Asia’s financial markets.
On Monday, CSC said it would buy 26.8 per cent of all the issued and outstanding capital stock of CS Bank, a licensed thrift bank that is listed on the Philippine Stock Exchange. Thrift banks generally focus on accepting savings deposits and providing mortgage loans.
The purchase price is 2.4 times the net asset value of CS Bank after considering “the scarcity value of the bank’s thrift licence, asset value and extensive branch network”, CSC said in a press release.
CS Bank was established in 1997 and it operates 34 branches or offices in the Philippines. The company also offers cash management, corporate and retail banking, and treasury services.
“Southeast Asia is currently experiencing rapid growth, with significant development potential in the financial market,” Or said.
CSC, which is engaged in securities and bond investments, loan financing and has a securities brokerage, said the Philippines has a low penetration of banking services and a young population.
