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Apr 6, 2016 @ 13:16

Yuchengcos, Taiwanese partner raise stake in RCBC amid scandal


Bilyonaryo Alfonso Yuchengco and Cathay Life Insurance Co. Ltd. of Taiwan are buying more shares in Rizal Commercial Banking Corp. (RCBC) amid its alleged involvement in the $81 million bank heist.

Yuchengco’s Pan Malayan Management and Investment Corp. acquired 8.8 million shares of RCBC at P30 each for a total consideration of P264 million last April 1.

This raised the interest of the Yuchengco firm to 42.31 percent equivalent to 592.25 million shares of RCBC from 41.68 percent or equivalent to 583.45 million shares.

As a vote of confidence in RCBC, Cathay Life Insurance also purchased 5.8 million shares of RCBC at P30 each for a total consideration of P174 million shares last March 31.

The Taiwanese firm’s shareholdings in the Yuchengco-led bank increased to 22.71 percent equivalent to 317.94 million shares from 22.29 percent equivalent to 312.14 million shares.

Cathay Life Insurance spent P7.95 billion to acquire a 20 percent interest in RCBC last year. It is the second largest shareholder of the bank after the Yuchengco Group.

International Finance Corp. (IFC), the investment arm of the World Bank, has invested P2.1 billion for a 2.6 percent stake in RCBC while IFC’s Asset Management Co. has infused P4.1 billion for a 5.08 percent stake in the bank.

RCBC has outstanding shares of 1.399 billion.

The market capitalization of RCBC has shed P2.8 billion since it was implicated in a money laundering scandal involving the $81 million embezzled by Chinese hackers from the Bangladesh central bank’s account at the Federal Reserve Bank of New York.

The share price of RCBC has lost 6.1 percent to close at P31 per share last Tuesday as the Senate Blue Ribbon Committee held its fourth hearing on the money laundering scandal from P33 per share last February 26.

In all, the Yuchengco-led bank’s market capital has declined to P43.37 billion last April 5 from P46.2 billion last February 26.

The Philippine Daily Inquirer reported last February 29 the involvement of RCBC in the alleged $81 million laundering scheme wherein Chinese hackers stole money owned by the Bangladesh Bank from the Federal Reserve Bank of New York.

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