Citystate Savings Bank Inc. said Monday several shareholders of the listed lender, including the estate and other companies of the late Amb. Antonio Cabangon Chua, have agreed to sell their stakes to Singapore-based CS Capital Investments Pte. Ltd, a wholly-owned subsidiary of Hong Kong-listed CSC Holdings Ltd.
Citystate said a total 43.4 million shares, equivalent to a 26.8 percent stake in the bank, will be sold to CS Capital at a total price of P735.9 million, which is 2.4 times locked box net asset value based on the most recent audited financial statement.
At the proposed price, Citystate shares will be sold at P16.97 each, an 89 percent premium to Monday’s closing price of P8.94. Citystate share surged 50 percent in Monday’s trade due to the impending sale.
At the end of 2023, Citystate had a net asset value of P1.14 billion. It has 34 branches, mostly located in Metro Manila.
The share purchase required regulatory approval, particularly that of the Bangko Sentral ng Pilipinas.
CSC Holdings told the HKSE that the acquisition “is a strategic investment of the company and represents the first step to implement financial business investment strategy. It also represents the effort of the Group to enter into the mainstream financial business world and lays out the business map for the Group in Southeast Asia, which has a great development potential,” it added.
The selling shareholders of Citystate at the estate of Amb. Cabangon Chua which holds 8.72 percent; Feorelio M. Bote, who owns 2.65 percent; Ronaldo B. Zamora, whose interest is 2.18 percent; Angelita S. Jose, who holds 1.92 percent; Eternal Plans, Inc., owner of 1.63 percent; Aliw Broadcasting Corp., which owns 0.44 percent; AMB. Alc Holdings & Management Corp., owner of 4.63 percent; and Top Ventures Investments & Management Corp., whose stake is 4.63 percent.
At the end of 2023, Citystate reported a wider net loss of P96.4 million compared with only P17.3 million in 2022. Its consolidated assets total P6.3 billion at the end of June 2024.
