Business
CSC Holdings Set to Purchase 26.8% Stake in CS Bank of the Philippines for $13 Million: A Strategic Move into Southeast Asia’s Financial Markets
CSC Holdings is planning to purchase shares in CS Bank of the Philippines for a total of US$13 million. The acquisition will need to pass through regulatory approvals in the Philippines and is anticipated to be finalized by the close of the year.
CSC Holdings, which is listed in Hong Kong and led by Raymond Or Ching-fai, the ex-CEO of Hang Seng Bank, is set to purchase shares in the Philippines' Citystate Savings Bank (CS Bank). This 736 million peso (US$13 million) investment is part of CSC Holdings' plan to broaden its presence in the financial sector of Southeast Asia.
On Monday, CSC announced its plans to purchase 26.8% of the total issued and available capital stock of CS Bank, a registered savings bank that's listed on the Philippine Stock Exchange. Savings banks typically concentrate on accepting savings deposits and offering mortgage loans.
The buying cost equates to 2.4 times the net worth of CS Bank, taking into account the rarity of the bank's thrift license, asset value, and expansive branch network, according to a statement from CSC.
CS Bank came into existence in 1997 and currently runs 34 outlets throughout the Philippines. The firm also provides services such as cash handling, business and individual banking, as well as financial management services.
"Right now, Southeast Asia is undergoing a swift expansion, and there's a substantial potential for development in the financial sector," Or stated.
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