Mitsubishi UFJ Financial Group is reportedly acquiring a 20% stake in Philippine lender Security Bank for $774m.
The acquisition is being made through Mitsubishi UFJ’s banking unit Bank of Tokyo-Mitsubishi UFJ Ltd (BTMU) as it is seeking to expand its presence in the Southeast Asian region, Bloomberg reported.
As per the agreed terms of the deal, BTMU will pay 245 pesos per common share and 0.10 pesos per preferred share of Security Bank.
Subject to local regulatory approvals, the acquisition is expected to be completed by June this year.
Upon completion of the deal, BTMU would become the second largest shareholder in the bank after the local Dy group, which owns a majority control.
BTMU Asia and Oceana CEO Go Watanabe was quoted by Reuters as saying: "We are making headway in our effort of becoming a Tier 1 global financial institution in the Asia market by 2020."
Security Bank is aiming to increase the number of branches from the current 262 to 500 by the end of this decade, Bloomberg reported citing Security Bank president Alfonso Salcedo.
The Philippine lender is also contemplating plans to invest in Indonesia and India. It offers a wide range of services including retail banking, brokerage services and leasing.
Mitsubishi UFJ’s investment would allow Security Bank to enter new markets.
As of March 2013, Mitsubishi UFJ Financial has assets of around US$2.5 trillion.
Image: Mitsubishi UFJ Financial headquarters in Tokyo, Japan. Photo: courtesy of Kakidai / Wikipedia.