Security Bank lists shares

sold to BTMU
By: Doris Dumlao-Abadilla
Philippine Daily Inquirer
01:34 PM June 28th, 2016

DY family-led Security Bank listed on Tuesday new shares issued to Japanese

banking giant Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU), which infused P36.9
billion in fresh capital to the bank through the purchase of a 20-percent stake.
Security Bank listed on the Philippine Stock Exchange (PSE) 150.707 million in new
common shares issued to BTMU last April 1.
The listing brought Security Banks total listed stock to around 753.54 million
common shares. Based on the banks trading price, this brings its market capitalization
or how much the investor market values the bank at around P150 billion
(equivalent to $ 3.2 billion).
The deal also beefed up Security Banks shareholders capital to P92.9 billion, the
fifth largest among private domestic universal banks in the country.
We thank the Bangko Sentral ng Pilipinas and the Philippine Stock Exchange for
their vital support of the Security Bank-BTMU strategic partnership. The partnership
gives Security Bank as an equity affiliate of BTMU additional capabilities to
service key critical requirements of our economy. These capabilities are in the areas of
infrastructure and project finance, retail finance, international banking and wealth
management. BTMUs parent, Mitsubishi UFJ Financial Group (MUFG), is one of the
worlds largest and most diversified financial groups with core strengths in such
areas, said Security Bank chair Alberto Villarosa said.
Following this partnership, BTMU became the second largest shareholder of Security
Bank while the Dy retained majority voting control.
The Security Bank-BTMU transaction was consummated in less than six months since
the deal was signed on January 14, 2016. The transaction received regulatory approval
last February 24, and was completed on April 1.

Read more: http://business.inquirer.net/211449/security-bank-listsshares-sold-to-btmu#ixzz4CvYSlA2N

HSBC upbeat on PH
equities
By: Doris Dumlao-Abadilla
Philippine Daily Inquirer
10:46 AM June 28th, 2016

BRITISH banking giant HSBC is wary of intensified geopolitical risks following the
vote favoring Brexit or Britains breakaway from the European Union but it is
upbeat on selected Asian emerging markets, including the Philippines.
Fan Cheuk Wan, HSBC head of strategy, said in a press briefing on Monday that
following the Brexit vote, HSBC had cut overall equity allocation for equities in line
with the shift to a more defensive strategy. However, she said HSBC still liked Asia
and within Asia, it had an overweight recommendation on China, Singapore,
Indonesia and the Philippines.
We believe Asia will stay relatively resilient to withstand the Brexit headwind and
we also believe that relatively limited direct trade of Asia to the UK should provide
cushion in terms of market drawdown driven by this external shock, Fan said.
Fan said the three domestic-driven economies the Philippines, Indonesia and China
would be better positioned to withstand the external headwinds while Singapore was
appealing for being the highest yielding equity market for Asia.
Overweight is a recommendation to load up on equities relative to a certain
benchmark.
In the same briefing, HSBC head of Asia-Pacific equity strategy Herald van Linde
said while Philippine equities were still expensive, the overweight rating was
warranted by the fact that profitability is still good against the backdrop of stable
underlying macroeconomic environment. Remittance flows continued to act as
stabilizer for the economy, he said.
HSBC expects Philippine corporate earnings to grow by around 9 percent this year,
slightly down from the 10 percent forecast in January, when the bank first issued its
overweight recommendation on local equities./rga

Read more: http://business.inquirer.net/211443/hsbc-upbeat-on-phequities#ixzz4CvYmQPNx

BDO takes full control of Generali

Pilipinas
By: Doris Dumlao-Abadilla
Philippine Daily Inquirer
10:41 AM July 1st, 2016

THE COUNTRYS leading lender BDO Unibank has obtained the regulatory green
light to take full control of insurance holding firm Generali Pilipinas Holdings
Company Inc. (GPHC), erstwhile a joint venture with Generali Group of Italy.
In a press statement on Friday, BDO said its re-focusing its insurance strategy to
align with its thrust to solidify its presence in the broad-based middle income market.
By assuming full control of the GPHC insurance operations, BDO expects to be able
to adapt more readily to the demands of its target markets.
BDO president Nestor Tan noted that while the partnership with Generali had been
integral to the success of the companies to date, the bank wished to embark on a new
journey of diversifying into the life insurance sector via this new wholly owned unit to
maximize cross selling of products to its extensive retail customer base.
GPHC, initially created out of the insurance partnership forged between BDO and
Generali in 1999, is the parent firm of life insurer Generali Pilipinas Life Assurance
Company (GPLAC) and Generali Pilipinas Insurance Co. (GPIC), which is engaged
in non-life insurance.

GPLAC will be renamed BDO Life Assurance Co. Inc.

On the other hand, Generali Group has acquired GPIC and relaunched the company as
life insurer, Generali Life Assurance Philippines Inc. (GLAPI).
Over the past 15 years, Generali has built up a solid track record working in
partnership with BDO. Generali has an extensive network of quality service providers
and strong local relationships in the country. It intends to leverage these strengths and
grow its group and retail businesses for the long term, the Generali group said in a
statement.
GLAPI said it intended to provide employee benefit solutions via group life and
medical insurance to multinational corporations, as well as small and medium
enterprises. It also plans to expand its product offerings to include individual life
products.
With Generalis international experience and product and service innovation,
Generali Life Philippines aims to become a significant player and cater to the
insurance and financial needs of the Filipinos, the company said.
The parties said this transaction between BDO and Generali would have no impact
whatsoever on the terms and conditions of all existing GPLAC individual and group
policies. These policies will remain in their present form and will be fully honored
notwithstanding the change in ownership.
GPLAC will continue to support and service all existing policyholders as provided for
under their in force policies./rga
Read more: http://business.inquirer.net/211535/bdo-takes-fullcontrol-of-generali-pilipinas#ixzz4DEZWvhCN
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Chinabank buys ATC Securities

by James Loyola
June 30, 2016 (updated)

The China Bank Group, through China Bank Capital Corporation (China Bank
Capital), has signed a share purchase agreement to acquire 100 percent of ATC
Securities, Inc.
ATC Securities, Inc. was incorporated on December 13, 1978 as Cathay Asia Securities, Inc., to engage in
securities brokerage and dealership, and changed its name to ATC Securities, Inc. in 1984.
It is a trading participant in the Philippine Stock Exchange (PSE) and maintains a trading booth located at the
trading floor of the PSE in Makati City.
The closing of the purchase of the brokerage firm by China Bank Capital will be subject to due diligence,
valuation and adjustments of the assets of the company and approval by the Securities and Exchange
Commission (SEC) and the PSE.
As disclosed earlier, ATC Securities, Inc. will eventually be renamed China Bank Securities Corporation and will
serve as the stock brokerage arm of the China Bank Group.
Upon closing, China Bank Capital will build up the capitalization of China Bank securities to P100 million, the
minimum mandated by SEC for dealer brokers.
We are initially putting in minimum regulatory (capital) requirements of P100 million for brokerage. We will then
decide if we need to further increase capital later on as we assess the ongoing operations, said China Bank
senior vice president and Investor & Corporate Relations Group head Alexander C. Escucha.
As a wholly owned subsidiary, China Bank Securities will enable China Bank Capital to do Initial Public
Offerings (IPOs) and list these IPO shares in the PSE.
China Bank Groups clients will also stand to benefit as they will have access to the stock brokerage service for
their equities-related transactions.
The bank is also putting up a special purpose corporation, to be known as CBC Assets One (SPC) Inc., which
will be utilized as a vehicle to hold the assets for the securitization transactions of China Bank Capital.
Early this year, China Bank Capital was mandated by listed property developer 8990 Holdings Inc. (stock
symbol HOUSE) to be the Arranger and Lead Underwriter for the P5 billion securitization of contract to sell
(CTS) receivables of its various subsidiaries which when completed will be the largest securitization
transaction in the country.

Read more at http://www.mb.com.ph/chinabank-buys-atc-securities/#PmUIHxvi4KdgLvTy.99