CSC Holdings Expands into Southeast Asia's Financial Market with Thrift Bank Acquisition
Financial Market Expansion through Acquisition
Hong Kong-listed CSC Holdings, chaired by former Hang Seng Bank CEO Raymond Or Ching-fai, has announced a significant acquisition of a stake in Citystate Savings Bank (CS Bank) of the Philippines for 736 million pesos (US$13 million). The deal entails the purchase of 26.8 percent of all the issued and outstanding capital stock of CS Bank, a licensed thrift bank listed on the Philippine Stock Exchange, focusing on savings deposits and mortgage loans.
Opportunity in Southeast Asia's Financial Services
This acquisition comes at a time when Southeast Asia is experiencing rapid growth, presenting substantial development potential in the financial market. Or highlighted the low penetration of banking services in the Philippines, where nearly half of the population lacks a bank account, and the median age is around 25 years. The acquisition is set to establish an innovative integrated financial platform, enhancing CSC's portfolio.
- CS Bank established in 1997, operates 34 branches across the Philippines.
- The purchase price values CS Bank at 2.4 times its net asset value, reflecting the scarcity of its thrift license and extensive branch network.
- CSC aims to draw business and financial services to the Philippines with this strategic partnership.
As a veteran banker, Or’s experience as vice-chairman and CEO of Hang Seng Bank bolsters this strategic move. The acquisition requires regulatory approvals in the Philippines and is expected to be finalized by the end of the year.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.