(Adds quotes, stock filing, background)
MANILA Aug 29 Philippine lender Rizal
Commercial Banking Corp is in talks to sell a 20
percent stake to Taiwan's Cathay Financial Holding Co,
Rizal Bank's chief executive said on Friday.
The medium-sized lender may sell a 10 percent stake while
shareholder CVC Capital Partners Ltd may also sell 10 percent,
CEO Lorenzo Tan told reporters.
"Every three years, we bring a new investor. We try to use
foreign money to grow," said Tan.
Rizal Bank told the local bourse on Friday that there were
ongoing discussions for a private placement but it did not
identify the investor. (bit.ly/1nJD5lZ)
Financial sources had previously flagged that the two
parties were in talks about the stake sale.
Bloomberg had earlier reported that Cathay offered to buy
Rizal Bank shares at 64 pesos apiece. Shares of Rizal Bank were
down 0.3 percent to 55 pesos at 0400 GMT, while the broader
index dropped 0.4 percent.
"If that price happens, we are happy because it gives us
credibility in the global marketplace," Tan said.
(Reporting by Karen Lema and Neil Jerome Morales; Editing by
Edwina Gibbs and Ryan Woo)