Vol. XXI, No. 194 [ Business World Online ]
Monday, May 5, 2008 | MANILA, PHILIPPINES
LISTED Export and Industry Bank has sold its remaining non-core assets to EIB Realty Developers, Inc. in order to concentrate on its core businesses.
The Philippine Stock Exchange will suspend trading of the bank’s shares today. The bank’s shares closed unchanged at 27 centavos per share last April 30.
In a separate disclosure, Riva Khristine V. Maala, EIB Realty assistant corporate secretary, said the listed property developer has bought certain bank assets including various condominium units and parking slots in Exportbank Plaza.
"We are still in the process of finalizing EIB Realty’s financial statements and annual report as the conditions of the sale have an impact thereon, although we expect to complete the same not later than June 30, 2008," she wrote.
In a letter to the exchange, Exportbank said the sale of these remaining non-core assets is consistent with the bank’s business plan, which was the basis for the infusion of additional capital by new investors.
The Lippo group of Hong Kong and other investors infused P3 billion in fresh capital to Exportbank in early 2006, and in return, got the Philippine Deposit Insurance Corp. to assume P10 billion worth of bad debts that Exportbank inherited from the defunct Urban Bank.
Exportbank currently ranks 39th largest in terms of assets. It owns 71.76% of EIB Realty.
Exportbank’s products and services consist of deposit services, corporate and commercial loans, consumer loans, trade finance, treasury services, trust banking services, and transaction banking.
Its clientele include high net worth individuals, prime corporate accounts, exporters, SMEs and individual/retail accounts.
In January 2003, Exportbank’s board of directors approved its rationalization plan, which outlines the continuance of operations of certain businesses and the elimination of non-vital and redundant businesses. — Ruby Anne M. Rubio
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