RCBC completes sale of 65% stake in Bankard


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Yuchengco-led Rizal Commercial Banking Corp. has unlocked P731 million in core or tier 1 capital after completing the sale of publicly listed firm Bankard Inc.

RCBC sold a 65.42-percent stake in Bankard after transferring the credit card operations to the parent bank, paving the way for the backdoor listing of new businesses through the shell company.

In a disclosure to the Philippine Stock Exchange, RCBC said the sale of publicly listed shell firm Bankard to RYM Business Management Corp. and other investors was completed through a block transaction on Dec. 27.

The transaction will allow the RCBC group to recognize a net gain on sale of about P123 million, monetizing the value inherent in the listed corporate vehicle, the disclosure said. In particular, RCBC will book a net gain of P69 million while RCBC Capital will recognize a net gain of P54 million. Net gain after taxes and fees and after taking into account the cost of investment is about P123 million.

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