City Savings Bank Inc., the thrift arm of Union Bank of the Philippines, is set to acquire a substantial stake in rural bank, Progressive Bank Inc.

Union Bank of the Philippines confirmed Oct. 5 a same-day report from the Philippine Daily Inquirer stating that City Savings Bank is awaiting regulatory approvals for the proposed acquisition.

The parent lender said City Savings Bank and Union Properties Inc. agreed to acquire 11,980,916 common shares of Progressive Bank at 3.34 pesos per share, subject to regulatory approvals.

Following the sale, City Savings Bank and Union Properties will own 49% and 6%, respectively, of Progressive Bank's outstanding share capital. Union Properties is also a unit of Union Bank of the Philippines.

Progressive Bank is based in the Philippines's Iloilo province.

As of Oct. 4, US$1 was equivalent to 54.28 Philippine pesos.