An investment agreement has been made between the ATRAM Group and Union Bank of the Philippines (UnionBank). After the deal is closed, current ATRAM shareholders will keep the remaining 72.5% of their ownership position in the company, while UnionBank will possess 27.5%.
The purchase will lead to a merger between Union Bank Investment Management and Trust Corporation (UBIMTC) and ATRAM Trust Corporation (ATC), two Trust Corp subsidiaries, with ATC emerging as the surviving company.
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In addition to this, the goal of this merger is to combine the best features of both businesses to provide a strong foundation for expansion and innovation in the asset and wealth management industry.
According to the most recent data, the merger will result in a major participant in the trust sector with combined assets under management (AUM) of approximately Php485bn ($8.2bn), greatly enhancing scale and capabilities.
Moreover, the cooperation seeks to provide customers a wide variety of superior financial products by fusing ATRAM’s modern asset management solutions with UnionBank’s digital expertise.
UnionBank is a retail bank with over 15 million customers. Meanwhile, ATRAM revolutionised investing by making over 2 million retail investors accessible through its partnerships and digital platforms.
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By GlobalDataEdwin R. Bautista, UnionBank President and CEO stated: “This partnership allows us to strengthen our offerings and provide even more tailored services to our customers, especially our larger Wealth client base as a result of the acquisition of Citibank Philippines’ consumer banking business. We are committed to ensuring they have access to the best financial solutions available while also creating broader career opportunities for our employees in a larger and very dynamic organisation.”
Michael V. Ferrer, Chief Executive Officer of ATRAM added: “This merger represents a milestone for ATRAM as we align with UnionBank, a leader in digital innovation. Together, we will change the game and redefine the asset management landscape in the Philippines. Our clients will benefit from an expanded suite of investment solutions, enhancing the value and service we deliver.”
In order to guarantee a smooth integration that puts customer service and staff welfare first, the investment and merger are subject to regulatory clearances and go through a thorough evaluation procedure. In the acquisition, UnionBank received financial advice from Exchange Equity Partners, while ATRAM received financial advice from AlphaPrimus Advisors.
