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Philippine Savings Bank to divest 20% stake in motor finance JV

Philippine Savings Bank will sell a 20% stake in Sumisho Motor Finance Corp. to GT Capital Holdings Inc. for a total cash consideration of 379.9 million pesos.

The bank said Aug. 9 that it will offload 2 million common shares of Sumisho Motor Finance, while PSBank Retirement Fund will sell another 2 million shares. Each share will be sold for 94.98 pesos.

Sumisho Motor Finance is a joint venture between Philippine Savings Bank, PSBank Retirement Fund, Sumitomo Corp. and Sumitomo Philippines. The joint venture primarily provides lending or leasing services to retail customers for the purchase of motorcycles in the Philippines.

Following the sale, Philippine Savings Bank will own 6 million shares in the motor finance company. PSBank Retirement Fund will exit the joint venture.

The deal is subject to GT Capital's confirmation and acceptance of the purchase price and terms and conditions of the sale.

The payment date is on or before Aug. 11.

The bank expects the sale to help it improve its Tier 1 capital ratio and capital adequacy ratio under Basel III.

GT Capital is the holding company of Metropolitan Bank & Trust Co., which owns an 82.675% stake in Philippine Savings Bank.

As of Aug. 9, US$1 was equivalent to 50.68 Philippine pesos.