This is AI generated summarization, which may have errors. For context, always refer to the full article.
The merger consolidates the two financial companies’ trust corporations — Union Bank Investment Management and Trust Corporation and ATRAM Trust Corporation (ATC) — with ATC as the surviving entity
MANILA, Philippines – Aboitiz-led Union Bank of the Philippines (UnionBank) announced on Monday, November 11 its merger with wealth management company ATRAM Group that consolidates their respective trust corporations.
In a disclosure with the Philippine Stock Exchange, UnionBank said that under the investment agreement with the ATRAM Group, UnionBank will hold a 27.5% stake in ATR Asset Management Incorporated while current ATRAM shareholders will retain the remaining 72.5%.
The ATRAM Group said the merger “changes the game in the asset and wealth management industry” as it creates a “leading player in the trust industry with combined assets under management of over P485 billion” thus “significantly increasing scale and capabilities.”
“A result of the investment will be a merger consolidating their respective Trust Corp subsidiaries, Union Bank Investment Management and Trust Corporation (UBIMTC) and ATRAM Trust Corporation (ATC), with ATC as the surviving entity. This merger aims to leverage the strengths of both organizations, creating a robust platform for growth and innovation in the asset and wealth management sector,” UnionBank said.
UnionBank is a pioneer in digital banking in the Philippines with over 15 million clients. ATRAM says it has more than 2 million retail investors through its digital platforms and partnerships.
“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,” said UnionBank President and CEO Edwin Bautista.
“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 organization,” he added.
ATRAM CEO Michael Ferrer said “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,” Ferrer said.
The ATRAM Group offers mutual fund, unit investment trust fund and trust services to its clients.
“By integrating UnionBank’s digital expertise with ATRAM’s innovative asset management solutions, the partnership aims to provide clients with a diverse range of high-quality financial products,” ATRAM said.
The merger is subject to regulatory approvals.
AlphaPrimus Advisors acted as financial advisor to ATRAM while Exchange Equity Partners served as financial advisor to UnionBank in the transaction.
UnionBank is a publicly listed universal bank. Its major shareholders are Aboitiz Equity Ventures, Social Security System, and Insular Life Assurance Limited.
ATRAM Group is owned by three shareholder groups: ATR Holdings Incorporated, BHF Partners Holdings Incorporated, and A. Soriano Corporation through its parent company ATRAM Investment Management Partners Corporation and subsidiary ATR KimEng AMG Holdings Incorporated.
ATRAM’s headquarters is in Rockwell, Makati City. – Rappler.com
