CSC Holdings’ $13M Stake Acquisition in CS Bank: Expanding into Southeast Asia’s Financial Markets

CSC Holdings is set to acquire a share in CS Bank from the Philippines for a sum of US$13 million. This deal, still pending approval from Philippine regulators, is projected to be finalized by the close of this year.

CSC Holdings, a Hong Kong-based company led by ex-CEO of Hang Seng Bank, Raymond Or Ching-fai, plans to acquire shares in the Philippine's Citystate Savings Bank (CS Bank). This acquisition, valued at 736 million pesos (around US $13 million), is part of their strategy to venture further into Southeast Asia's financial sector.

CSC announced on Monday that it intends to acquire 26.8 percent of the total issued and available shares of CS Bank, a registered savings bank that is publicly traded on the Philippine Stock Exchange. Typically, savings banks concentrate on receiving savings deposits and offering mortgage loans.

The buying cost is 2.4 times more than the net worth of CS Bank, taking into account the rare value of the bank's thrift license, its asset value, and widespread branch network, as stated by CSC in a press statement.

Established in 1997, CS Bank now runs 34 branches throughout the Philippines. In addition, the bank provides cash management, business and personal banking, as well as financial management services.

"Southeast Asia is presently undergoing swift expansion, possessing substantial prospects for growth in the financial sector," stated Or.