Robinsons Retail completes BPI buy-in deal

The company purchased 200 million shares of the bank. 

Robinsons Retail Holdings, Inc. reported it has completed the purchase of over 198 million shares of the Bank of the Philippine Islands (BPI) for P99.50 per share.

The transaction, estimated to be worth P19.7b, involved the purchase of 4.4% effective equity interest of Arran Investment Pte. Ltd. in BPI. 

The equity interest of Arran in BPI is by means of the ownership of Redeemable Preferred Shares amounting to 21.9% in Liontide Holdings, Inc., which accounts for 20.0% equity interest in BPI.

Read more: Robinsons Retail net income soars 60.8% in Q3

Moreover, a new Shareholders Agreement amongst Robinsons Retail, Liontide, and Ayala Corporation was entered into on 13 January, which will provide Robinsons Retail redemption option.

“Robinsons Retail will be able to tap into the extensive consumer customer base of BPI to crosssell products and services while in turn giving Robinsons Retail suppliers and service providers the capability to tap into BPI’s vast financial products to help fund their working capital requirements as they expand their business, which should translate to better service levels,” the company said in a statement.

“On the financial aspect, Robinsons Retail will receive a steady stream of dividends from one of the largest and most profitable banks in the country versus the continuing need to finance Robinsons Bank’s growth.”