February 11, 2013

PNB Public Floats Drops to 19% on allied Merger

Philippine National Bank (PNB) and Allied Banking Corp. have executed a much-awaited merger via a share swap deal. PNB trimmed down its public float to 18.99% from 31.15% as a result of its merger with Allied Banking Corop. This is due to the share swap with the Lucio Tan Group which owns 80% to 90% of Allied.

PNB president and CEO Byron Omar Mier explianed that the drop in the public ownership oof the bank is just an offshoot of the merger.

he said "Right now, Allied Bank’s ownership by the Lucio Tan Group is about 80-90 percent while ownership in PNB is lower than that. As a result of the share swap, the public exposure in the bank dropped."

However, Mier stated that they are expecting PNB to improve its public share in the future. "“Over time, we see the public increasing their share in PNB as people may start buying more shares of the bank or if  we raise additional capital,” he said."

Also, the Philippine National Bank board has approved the merged bank's authorized capital stock to be raised to P70 billion from P50 billion at a par value of P40 per share.