Robinsons Retail Holdings Inc. raised its stake in Bank of the Philippine Islands to 6.8% by purchasing an additional 4.4% of the lender for a price tag of P19.7 billion—a transaction that should entitle one of the country’s largest retailer to at least a seat in the bank’s 15-man board.
Robinsons Retail purchased the additional shares in BPI from Arran Investment Pte. Ltd., an affiliate of GCI Private Ltd., a sovereign wealth fund in Singapore that manages its foreign reserves.
Arran indirectly owned a 4.4% stake in BPI through Liontide Holdings Inc., which holds redeemable preferred shares in the bank that may be converted to common shares and equivalent to a 20% stake. Arran has exchanged preferred shares equal to 3.3% of BPI and sold those to Robinsons Retail along with the remaining preferred shares that represent another 1.1% ownership in BPI.
The Arran stake—bought by Robinsons Retail at a price equivalent to P99.50 for each common BPI shares representing a discount to Friday’s closing price of P110—adds to the 2.4% stake of Robinsons Retail in the bank as a result of the merger of BPI with the Gokongwei Group’s Robinsons Bank Corp. Last year’s merger also gave another Gokongwei firm, JG Capital Services Corp., a 3.6% stake in BPI.
Robina Gokongwei-Pe, president and chief executive officer of Robinsons Retail, said the purchase of additional BPI shares will not only give the retailer a steady stream of dividends but will also enable the company to tap into the extensive consumer customer base of BPI to cross sell products and services.
She said the deal will also give Robinsons Retail suppliers the capability to tap into BPI to help fund their working capital requirements as they expand their business.
