Union Bank of the Philippines (UnionBank) subsidiaries City Savings Bank, Inc. and Union Properties, Inc., have signed a Share Purchase Agreement (SPA) with Aboitiz Equity Ventures, Inc. (AEV) to acquire 51% of the common shares of transaction network PETNET, Inc.
PETNET, more widely-known by its retail brand name PERA HUB, has the largest network of Western Union outlets in the Philippines. PETNET has over 2,800 outlets nationwide. It offers a variety of cash-based services including remittance, currency exchange and bills payment.
The SPA was signed by AEV Chief Finance Officer (CFO) Mr. Manuel R. Lozano, City Savings Bank Chairman and UnionBank Senior Executive Vice President Mr. Eugene S. Acevedo, and Union Properties President Mr. Peter F. Quiambao and Vice President Ms. Rebecca M. de la Cruz.
The transaction is subject to closing conditions and regulatory approval, targeted by the 2nd quarter 2018.
With this acquisition, CitySavings intends to leverage on PERA HUB’s expansive retail network and expand its existing loans-marketing partnership with PETNET. Importantly this should widen CitySavings’ mass market reach and help achieve its goal of enabling inclusive prosperity. This is the right step towards fulfilling our brand promise of advancing business and communities.
In addition, this move is in line with the Bangko Sentral ng Pilipinas’ (BSP) efforts to improve financial inclusion in the country by using non-traditional channels. This acquisition gives the UnionBank group a strong platform to do agency banking, in which banks employ third-party outlets to perform certain financial services on their behalf.
Aboitiz previously purchased its majority stake in PETNET in 2015, followed by the financial services company’s significant expansion. Just a few months ago, PETNET maintained its position as the largest agent location network of Western Union in the Philippines as Western Union services were expanded into LBC’s 1,300+ locations through a strategic partnership .
With UnionBank and CitySavings’ robust plans for digitalization and greater financial inclusion for the underserved sectors of society, PETNET is set to maximize its large network and roster of services to fulfill its vital role in advancing business and communities.