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UPDATE 1-Philippines' Rizal Bank in talks to sell 20 pct stake to Cathay Financial
August 29, 2014 / 4:31 AM / 3 years ago

UPDATE 1-Philippines' Rizal Bank in talks to sell 20 pct stake to Cathay Financial

(Adds quotes, stock filing, background)

MANILA, Aug 29 (Reuters) - 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)

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