CSC Holdings’ $13 Million Acquisition of CS Bank Stake: A Strategic Move into Southeast Asia’s Thriving Financial Market

CSC Holdings is set to purchase a share in CS Bank in the Philippines with a deal valued at $13 million USD. The purchase is contingent upon gaining regulatory consent in the Philippines and is anticipated to be finalized by year's end.

CSC Holdings, a company listed in Hong Kong and led by ex-CEO of Hang Seng Bank, Raymond Or Ching-fai, plans to purchase shares in the Philippines-based Citystate Savings Bank (CS Bank). This move, costing 736 million pesos (equivalent to US$13 million), is part of their strategy to grow their presence in Southeast Asia's financial sector.

On Monday, CSC announced its plans to purchase 26.8 per cent of the total issued and outstanding shares of CS Bank, a licensed savings bank that is publicly traded on the Philippine Stock Exchange. Savings banks are typically known for accepting savings deposits and offering mortgage loans.

The buying price is 2.4 times greater than the net worth of CS Bank, taking into account the unique value of the bank's thrift license, asset value, and widespread branch network, according to the press statement issued by CSC.

CS Bank was founded in the year 1997 and currently runs 34 outlets or branches across the Philippines. In addition to this, the firm provides services such as cash handling, commercial and individual banking, as well as treasury functions.

"Southeast Asia is presently undergoing quick expansion, with substantial opportunities for growth in the financial sector," Or stated.