PJS advises Bank of Tokyo-Mitsubishi in acquiring 20% equity of Security Bank

January 15, 2016

Mitsubishi UFJ Financial Group Inc.’s (MUFG) commercial banking unit, the Bank of Tokyo – Mitsubishi UFJ, Ltd. (BTMU), has entered into a partnership with Security Bank Corporation (SBC) through the acquisition of 20% of the voting stock of SBC.

In what has been touted by Bloomberg as "the largest equity investment in a Philippine financial institution by a foreign firm," BTMU will own 150,707,778 commons shares at PhP245 per share and 200,000,000 preferred shares at PhP 0.10 per share or a total investment of PhP36.9 billion (USD773 million). BTMU will also hold two seats in SBC’s board of directors.

The transaction is considered as an affirmation of the prime position currently held by the Philippines, particularly the country’s financial institutions after the liberalization of the banking sector in 2014.

PJSLaw acted as Philippine counsel to BTMU in this transaction, with the team led by Ramil E. Bugayong, Partner and Co-Head of the Firm’s Banking, Finance and Capital Markets Group, together with one of the Firm’s Senior Associates, Francis Alvin V. Asilo.

“We are honored to be part of this historic deal,” according to Bugayong. “More than ever, we in PJS are very optimistic today about the readiness of Philippine financial and commercial institutions to be active players in the global market. We are inspired to work harder to support our clients to make deals happen."