Business
CSC Holdings to Acquire $13 Million Stake in Philippine’s CS Bank, Expanding into Southeast Asia’s Financial Markets
CSC Holdings is set to purchase shares in CS Bank of the Philippines, with the deal valued at US$13 million. The completion of this acquisition is contingent upon the approval of regulators 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 acquire a share in the Philippines' Citystate Savings Bank (CS Bank). This purchase, valued at 736 million pesos (approximately US$13 million), is part of their strategy to broaden their presence in the financial sectors of Southeast Asia.
CSC announced on Monday that it intends to purchase 26.8% of the total existing shares of CS Bank, a licensed savings bank that trades on the Philippine Stock Exchange. The primary operations of savings banks typically involve taking in savings deposits and offering mortgage loans.
The acquisition cost is 2.4 times the net worth of CS Bank, taking into account "the limited availability of the bank's savings license, asset value, and widespread branch network", as stated by CSC in a press announcement.
CS Bank, founded in 1997, runs 34 outlets across the Philippines. In addition to this, they provide services in cash management, corporate and retail banking, as well as treasury operations.
"Southeast Asia is presently undergoing swift expansion with a substantial potential for growth in the financial sector," stated Or.
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