Makati City, January 23, 2009. East West Banking Corporation (EastWest Bank) and American International Group, Inc.(AIG) announce that they and certain of AIG’s subsidiaries, including Philippine American Life and General Insurance Company (Philamlife) and AIG Consumer Finance Group, Inc., have entered into a Share Sale Agreement for EastWest Bank to acquire all of the shares of AIG PhilAm Savings Bank, Inc. (AIGPASB), PhilAm Auto Finance & Leasing, Inc. and PFL Holdings, Inc.
“The acquisition of AIG PhilAm Savings Bank and the two related companies will lead to the expansion of EastWest Bank’s retail banking business and support EastWest Bank’s intention to become a more significant player in the industry. AIGPASB will expand our retail footprint, give us better economies of scale and strengthen our service delivery capabilities to the broad middle market segments that include business enterprises and companies,” said Tony Moncupa, Jr., EastWest Bank’s President & CEO.
The share sale transaction, which is conditioned upon receipt of regulatory approval, is expected to close in the second quarter of 2009.
The combined assets of the two companies are expected to total approximately P 63 billion and to result in EastWest Bank becoming the sixth largest credit card issuer in the Philippines in terms of cards-in-force (CIF), and the 6th largest in terms of card receivables. The acquisition is expected to nearly double EastWest’s auto loan receivables to approximately P8 billion and moved it as 6th largest. The combined banks will have a total of 89 branches, 54 in Metro Manila and 35 in other key cities and provinces, as AIGPASB adds nine (9) branches to the 80 of East West.
EastWest Bank is a subsidiary of the Filinvest Development Corporation (FDC), one of the country’s premier conglomerates, with business interests in real estate development and leasing, financial and banking services and the sugar business.
Philamlife President/CEO & AIGPASB Board Director Jose L. Cuisia said, “We are pleased with the bid process and believe the outcome serves the best interests of all parties. We look forward to a smooth transition and integration process.”
“Our customers and our credit card, auto loan, deposit and trust businesses will benefit from EastWest Bank’s broad, nationwide distribution network, comprehensive product offering and affiliated businesses. Equally important, EastWest Bank’s acquisition of AIGPASB presents an opportunity for our employees to build a career with an institution that has much potential for growth and success." said AIGPASB President & CEO Joven Reyes.
Blackstone Advisory Services provided financial advice to AIG in connection with AIG’s global restructuring program. Deutsche Bank acted as financial advisor and Linklaters served as legal counsel to AIG on this transaction.”
About AIG Philam Bank
AIG PhilAm Savings Bank, Inc. (AIGPASB) is an indirect subsidiary of American International Group, Inc. (AIG), a world leader in insurance with operations in more than 130 countries and jurisdictions. It is also a subsidiary of the Philippine American Life and General Insurance Company, the largest and most diversified insurance company in the Philippines and the undisputed market leader for over half a century.
AIGPASB offers credit cards, auto loans, deposits, priority banking and trust. In July 2007, AIG PhilAm Bank became the first thrift bank locally to issue long-term negotiable certificates of deposit. In December 2007, the Bank entered into an agreement with Ford Credit International, Inc. (FCI) to acquire all of FCI’s shares in Primus Finance & Leasing, Inc. and PFL Holdings, Inc.
AIGPASB has nine (9) branches nationwide – six (6) in Metro Manila and three (3) in the provincial areas. As of December 31, 2008, the Bank’s total deposits level is P9.7 billion. Its auto loan receivables and credit card receivables reached P4 billion and P4.7 billion, respectively.
About EastWest Bank
East West Banking Corporation (EastWest Bank) is a subsidiary of the Filinvest Development Corporation (FDC), one of the country’s premier conglomerates, with business interests in real estate development and leasing and in financial and banking services and the sugar business. Through the years, the Bank has successfully capitalized on the financial strength of and synergy from the business organizations under the Filinvest Group.
The Bank has a network of 80 branches, 48 of which are located in Metro Manila and 32 in the provincial areas. It offers a wide range of financial services designed to meet the banking needs and requirements of consumers and its growing corporate clientele. As of December 2008, the Bank’s Total Assets is P49.9 billion, while Total Deposits is P39.4 billion. Auto Loans receivables reached P4 billion while credit cards receivables was recorded at P3.6 billion.
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