Global bank acquires Banvivienda
The acquisition of Banvivienda’s operations will convert Global Bank into an entity of $ 8,433 million in assets, according to the figures of both banks as of June 30.
The loan portfolio of both entities totals $ 6,391 million and deposits $ 4,855 million.
Global Bank, which was already the second private equity bank in Panama, will gain more muscle to compete in the ring.
After months of negotiations and rumors generated by an operation of this type, the transaction took place yesterday at the headquarters of Banvivienda in Costa del Este. The legal representatives of both entities signed an agreement that will imply the acquisition by Global Bank of 99.97% of the shares of Banvivienda, for a price of $ 245 million, which will be paid in cash and with 5% of the share capital of GB Group , which will go to the World Group.
"The operation is consistent with our strategy of growing in the Panamanian market. We believe in the system and in the industry, we further consolidate our market position, " Jorge Vallarino, Jr , executive vice president of Global Bank, told this newspaper.
The net worth of Banvivienda, as of June 30 was $ 164 million, so the agreed price -which may be modified at the close of the transaction- is 1.5 times Banvivienda’s equity. "The transaction allows the shareholders of Banvivienda to take advantage of the opportunities presented by the new consolidation trends in the markets," said Fernando Lewis , president of Banvivienda, as well as highlighting that they remain in the banking business through participation in GB. Group, controller of Global Bank.
The executive referred to the importance of having a greater scale in the banking business, especially with the new trends in the industry. "Medium and small banks incur more expenses related to new regulations, with the compliance issue ... There is also the situation of banking correspondents, which is still a risk for small and medium banks. It is important to have a scale and be a partner in a large bank, "he said.
The agreement signed yesterday is subject to the approval of the Superintendency of Banks of Panama and the Superintendency of the Securities Market .
The operation is expected to be completed later this year.
For the time being, therefore, the two companies will continue to operate independently, as they have done up to now.
Global Bank has drawn up a plan that will conclude with the integration of both banks, a transition that, according to Vallarino, will be transparent for clients.
On the future of Banvivienda employees, Vallarino said that "the human capital that Banvivienda has is one of its main assets. I would tell the collaborators that they can feel supported. "