Rizal In Talks with CVC Asia Pacific

The Philippines’ Rizal Commercial Banking Corp. is in talks with Hong Kong-based CVC Asia Pacific, and is negotiating to sell 127 million shares to the private equity firm, Reuters reported, citing the Manila Bulletin. The stake is worth roughly $83 million, and would be part of the banking company’s capital raising plans. In March Rizal sold a 7.2% stake to the International Finance Corp., the World Bank’s private sector arm, for about $50 million.

(Reuters) – The Philippines’ Rizal Commercial Banking Corp (RCBC) said on Tuesday it was in talks to sell shares to a private equity investment fund, which a newspaper said was Hong Kong-based CVC Asia Pacific.

The Manila Bulletin said RCBC, the country’s fifth-largest listed bank by assets, was negotiating the sale of 127 million shares as part of its capital raising plans. At Tuesday’s closing price, the stake would be worth $83 million.

In March, the bank sold a 7.2 percent stake to the International Finance Corp, the World Bank’s private sector arm, for about $50 million and said it was in talks with a potential investor to sell a minority stake.

“A confidentiality agreement prevents RCBC from disclosing at this point in time the name of the private equity fund until such time the negotiations are finalised,” the bank said on Tuesday.

Citing central bank sources, the paper said CVC was conducting due diligence on RCBC and targeting to conclude talks with the bank by the end of May.

Shares in RCBC, with a market value of $650 million, ended down 0.2 percent at 28.25 pesos, in a market that fell 0.6 percent. In 2011, RCBC shares have fallen 0.5 percent, underperforming a 2.5 percent rise in the broader market.

($1=43.3 pesos)

(Reporting by Erik dela Cruz; Editing by John Mair)