East West Bank Pays $45 Million For AIG's Philippine Savings Bank
12 March 2009 - 3:09PM
Dow Jones News
East West Banking Corp. on Thursday said it paid $45 million
earlier this week to American Insurance Group Inc. (AIG) for the
U.S. company's savings bank and two other units in the
Philippines.
Antonio Moncupa, president of East West Bank, told reporters
that the amount paid was lower than the earlier agreed upon price
of $48.5 million for AIG Philam Savings Bank, Philam Auto Finance
and Leasing Inc., and PFL Holdings Inc. because of some valuation
adjustments.
Moncupa said the bank already secured the approval of the
central bank to merge Philam Savings and the two other firms with
East West Bank.
Philam Savings acquired the auto finance firms in 2008, but had
to keep it as a separate company since central bank rules don't
allow it to go into nonallied businesses. As a commercial bank,
East West Bank won't have this problem.
East West Bank is the banking arm of investment holding firm
Filinvest Development Corp. (FDC.PH).
AIG sold the savings bank and the two firms to raise funds
needed to pay debts with the U.S. government.
-By Cris Larano, Dow Jones Newswires; 632-848-5051;
cris.larano@dowjones.com