The board of directors of Tan-led Philippine National Bank (PNB) and Allied Banking Corp. (Allied Bank) approved on Friday changes in their merger plan.
In a joint disclosure with the Philippine Stock Exchange (PSE), the banks said that under the proposed amended terms, PNB will serve as the surviving entity and will issue 130 PNB shares for every Allied Bank comment shares and 22.763 PNB shares for every Allied Bank preferred share.
“PNB shares will be issued at P70.00 per share,” the disclosure said.
The proposed amendments will be presented to the shareholders of the banks during their scheduled shareholder meetings, which are yet to be scheduled.
The merger will result to the creation of 4th largest private domestic bank in the country with a combined distribution network of 646 branches nationwide and combined total assets of P514 billion at the end of the third quarter this year.
The disclosure also said that the merger will have “the largest international footprint across the Asia Pacific region, Europe, the Middle East and North America.”
PNB president and chief executive Carlos A. Pedrosa said “the merger will mark a special milestone for our bank.”