Asia United Bank (AUB), the banking arm of Philippine’s Rebisco Group, has bolstered its remittance business by acquiring Singapore-registered money transfer firm Pinoy Express.
The acquisition of 100% of Pinoy Express had been approved by AUB’s board of directors, Philippine newspaper The Inquirer reported citing papers filed by the bank with the Philippine Stock Exchange.
"The decision to invest in Pinoy Express PTE Ltd. is expected to improve AUB’s coverage of the Singapore remittance market," the filing said.
Pinoy Express offers a wide range of remittance products and services to migrant workers, principally overseas Filipinos based in Singapore.
According to the publication, the sellers are Seah Keng Chuan and Dione Mohammad.
The value of the acquisition, which is based on the historical income of Pinoy Express, is less than 1% of AUB’s book value, the statement added.
The deal, whose terms are not disclosed, is expected to be completed in the fourth quarter of 2015, upon receipt of all the necessary regulatory approvals.