Japanese lender The Bank of Tokyo-Mitsubishi UFJ (BTMU) has agreed to acquire a 20% stake in Philippines’ Security Bank in a deal worth PHP36.9bn ($774m).
The deal will be the largest equity investment in a Philippine financial provider by a foreign investor, and will make BTMU the second largest shareholder of Security Bank.
As per the agreed terms of the deal, BTMU will purchase newly issued primary shares of the Filipino lender , which includes 150,707,778 common shares at PHP 245 per share and 200,000,000 preferred shares at PHP 0.10 per share.
The transaction is projected to help Security Bank raise its shareholder capital from PHP 52.4bn as of September 2015 to PHP89.3bn on a pro-forma basis.
Subject to regulatory approval, the deal is scheduled to close in the first half of 2016.
Upon takeover, BTMU will recruit two directors on Security Bank’s Board. Security Bank will also become an equity affiliate of the Tokyo-based lender.