(April 6) – The Bank of Nova Scotia has finally announced its long-expected agreement to sell its 40% stake in Solidbank.
No price has been disclosed on the deal that will see Scotia sell to Metrobank of the Philippines. Scotia first acquired its stake in 1988 through a debt equity swap. Late last year Metrobank bought 51% of the firm. It intends to merge with Solidbank.
Scotia says that despite the sale it “remains committed to the Philippine market”. It will continue to operate there under the Scotia name. “With Metrobank’s plans to merge their bank’s operations with Solidbank, Scotiabank’s ownership stake would have been substantially diluted and therefore we felt that the best long-term business decision was to sell our stake,” says Bruce Birmingham, Scotia’s president.
The transaction is subject to board and regulatory approval and is expected to close by mid-May.
-IE Staff