Commission Decision No. 01-M-029/2020:
In the Matter of the Proposed Acquisition by City Savings Bank, Inc.
and UBP Investments Corporation of Shares in Bangko Kabayan, Inc.
The proposed transaction is the acquisition by City Savings Bank, Inc. (CitySavings) and UBP Investments Corporation (UBPIC, formerly Union Properties, Inc.) of 2,574,178 common shares of stock of Bangko Kabayan, Inc. (Bangko Kabayan), representing 70% of the outstanding common shares of stock of the company.
CitySavings is a thrift bank that provides a range of mass market finance products and services such as loans to public and private school teachers, pensioners of Government Service Insurance System and Social Security System pensioners, Overseas Filipino Workers, as well as for motorcycles and other traditional deposit products.
On the other hand, UBPIC is a financial holding company that is primarily engaged in the investment, administration, and disposition of real and personal properties, and secondarily in the administration and management of Union Bank of the Philippines’ (UnionBank) premises and other properties such as buildings, condominium units and other real estate. Both CitySavings and UBPIC are part of the UnionBank Group of Companies.
On the other hand, Bangko Kabayan is a private development bank with 24 branches operating in the provinces of Batangas, Laguna, and Quezon. Bangko Kabayan caters mainly to the business needs of the micro, small and medium-sized entrepreneurs (MSMEs) located in the countryside, notably in Region 4.