Certain minority shareholders of Citystate Savings Bank, Inc. (CSBI), a publicly listed thrift bank in the Philippine Stock Exchange, have entered into a Share Purchase Agreement with CS Capital Investment Pte. Ltd., a subsidiary of Hong Kong-listed CSC Holdings Ltd. (CSC). This strategic partnership marks the sale of a 26.80% stake in CSBI, valued at approximately PHP 736 million.
The investment by CSC Holdings represents a key milestone for CSBI, as it seeks to expand its reach and further enhance its banking services. Through this partnership between CSBI shareholders and CSC, CSBI will benefit from CSC’s global market expertise, technological resources, and vast experience in financial services. This aligns with CSBI’s ongoing digital transformation, in accordance with the mandate of the Bangko Sentral ng Pilipinas (BSP).
This transaction values CSBI at around PHP 2.75 billion, or PHP 17 per share. Key factors considered in this valuation include CSBI’s net asset value of over PHP 1.14 billion as of December 31, 2023, its thrift bank license, and its established network of 34 branches, primarily located in Metro Manila. This strong foundation reinforces CSBI’s ability to provide enhanced financial solutions to Filipino businesses and households.
The completion of the transaction is subject to certain regulatory approvals, including that of the BSP’s Monetary Board. Once finalized, the deal will position CSBI to enhance its product offerings and serve a broader range of clients, particularly in the digital space. This strategic partnership highlights CSBI’s dedication to serving the growing financial needs of the Filipino people.
Citystate Savings Bank is part of the ALC Group of Companies founded by the late Amb. Antonio L. Cabangon Chua and currently chaired by D. Edgard A. Cabangon.
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