Union Bank of the Philippines eyes acquiring mid-size banks

In line with its reported planned expansion.

Philippine-based Union Bank of the Philippines (UBP) is reportedly looking to acquire mid-size banks, similar to its size as it gears up to expand its presence in the growing economy.

According to a research note from Maybank Kim Eng, however, the bank has yet to initiate discussion for any possible M&A deal.

It is keen to look into United Coconut Planters Bank (UCPB) once it is put up on sale.

In another news report by the Philippine Daily Inquirer, the government is eyeing to bid out its 72%-controlling stake in UCPB by 2015.

Here's more from Maybank Kim Eng:

Bidding terms are being finalized which would include recapitalization to help the bank comply with the Basel 3 framework.

Preliminary work on UCPB's recapitalization exercise is reportedly complete, with its financial advisor pegging an amount between PHP14b to PHP37b.

The government wants the sale of the bank to be completed next year before the 2016 election.

Aside from UBP, several banks were reportedly interested in UCPB including BDO Unibank Inc., Philippine National Bank, East West Bank, and Philippine Bank of Communications.