June 16, 2015

JG Summit Holdings Inc (JGS) interested in UCPB auction

According to an article from Business World, JG Summit Holdings Inc (JGS) has purchased documents for the auction of the government’s 73.9% stake on United Coconut Planters Bank (UCPB).

JGS may look into bidding for UCPB, in line with the planned expansion of its unlisted thrift banking unit, Robinsons Bank. The article quoted the JGS president and COO as saying that the company wants to grow the bank’s assets from ~P50b to ~P200b by 2020. In the process, JGS will be beefing up the bank’s capital to support the bank’s asset expansion.

Also, the company’s plans to recapitalize its banking unit may satisfy a major requirement of the UCPB auction, as the government would require the winning bidder to infuse at least P15b in fresh capital into UCPB. If JGS can grow its banking unit and gain commercial or universal bank status, this can potentially enhance further the conglomerate’s portfolio and overall valuation. - WealthSec