Bank of the Philippine Islands, or BPI, expects its merger with Robinsons Bank Corp., or RBC, to take effect on 1 January next year, following the policy-making Monetary Board's approval.

In a disclosure to the Philippine Stock Exchange on Monday, Ayala-led BPI, the surviving entity, said the central bank approved the merger with Gokongwei-owned RBC on 14 December. 

However, BPI stressed it has yet to receive the green light from the Securities and Exchange Commission to finalize the merger.

"The proposed merger will unlock various synergies across several products and service platforms, expand the customer and deposit base of both banks through the merged entity, and, at the same time, by capitalizing on BPI's expertise and network, enhance the overall banking experience of RBC customers," BPI said.

Under the consolidation terms, BPI will issue common shares to RBC shareholders which are equivalent to 6 percent of the resulting outstanding common shares or 314,003,992 shares.

BPI for RBC shares

As the surviving entity, BPI will also have the authority to manage RBC assets and assume its liabilities recorded as of 30 September 2022 up to the effective date of the merger.

"Upon the effectivity of the merger, BPI shall issue to the shareholders of RBC such number of primary BPI common shares and in exchange, BPI will absorb the net assets of RBC," BPI said.

"BPI will be able to expand its client base, accelerate growth, and ultimately increase shareholder value through partnerships with the Gokongwei Group," the Ayala-led bank added.

RBC has three subsidiaries, namely its thrift arm Legazpi Savings Bank Inc., fintech arm GoTyme Bank Corporation and Unicon Insurance Brokers Corporation.