Thread by @cnnphilippines

UnionBank announces its acquisition of Citigroup's PH consumer banking business.

Deal includes Citi's credit card, personal loans, wealth management, retail deposit segments; about 1,750 Citi employees including senior mgmt. expected to join the bank, it adds | @pplmanuel

@pplmanuel The bank adds it will pay a cash consideration for Citi's PH consumer business's net assets atop a ₱45.3B premium.

UnionBank: Based on the anticipated increase in risk-weighted assets, the required equity is approximately ₱9.7 billion as of 30 June 2021 | @pplmanuel

@pplmanuel UnionBank says the acquisition will be funded by a combination of internal resources, stock rights offering (SRO)

UnionBank: The Bank’s key shareholders – Aboitiz Equity Ventures, Insular Life Assurance, and Social Security System – are fully committed to the SRO | @pplmanuel

@pplmanuel UnionBank adds the deal with Citi is expected to close in H2 2022 and is subject to regulatory approvals (BSP Monetary Board, PCC, PDIC, SEC, IC).

Citi will keep running its PH consumer banking business until the acquisition's completion, it adds | @pplmanuel

@pplmanuel UnionBank also sought a trading halt until 10:30am to give investors 'time to clearly understand and absorb' its announcement on the acquisition of Citi's PH consumer banking business | @pplmanuel