Duterte okays merger of Land Bank, UCPB

By Prince Golez

President Rodrigo Duterte has approved the merger between Land Bank of the Philippines (LBP) and United Coconut Planters Bank (UCPB).

In signing Executive Order No. (EO) 142, Duterte said the merger of the LBP and the UCPB will “significantly” strengthen capability to deliver financial services to the coconut industry and the entire agricultural sector.

It will also contribute to economic sufficiency, foster countryside development and financial inclusion, and promote stability in the country’s banking system, the Chief Executive added.

“The merger of the UCPB with the LBP is hereby approved, with the LBP as surviving entity, subject to the requisite approvals from the Securities and Exchange Commission, and to the conditions and limitations under RA (Republic Act No.) 11524 and RA 11232 or the Revised Corporation Code of the Philippines,” EO 142 stated.

All assets and liabilities of the UCPB will be transferred to the LBP.

“All other government offices and agencies are directed to take prompt actions, as may be necessary and subject to applicable laws and regulations, to ensure the full implementation of the provisions of the Order six months after its effectivity,” the latest directive said.

Under the Order, the LBP should acquire the outstanding Special Preferred Shares held by the Philippine Deposit Insurance Corporation (PDIC) in the UCPB, taking into account the recovery of PDIC’s financial assistance to the UCPB, the valuation of the shares by the PDIC and LBP for this purpose, and the LBP’s return on equity.

The UCPB and LBP should also prepare and implement an integration plan towards the full implementation of the merger, in accordance with existing laws and regulations, it said.

The LBP may also adopt and implement a reorganization plan, as may be approved by the LBP Board of Directors, subject to the requirements of RA 10149 (GOCC Governance Act of 2011) and the rules and regulations of the GCG.

LBP and UCPB personnel who may be separated from service as a consequence of the reorganization may be entitled to separation incentives.

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Source: Latest Politics News Today (Politics.com.ph)