31 Oct FMIC signs share purchase agreement with MET Holdings for its FAMI stake
FIRST METRO Investment Corp. (FMIC), the investment banking arm of Metropolitan Bank & Trust Co. (Metrobank), has signed the share purchase agreement for the sale of its controlling stake in First Metro Asset Management, Inc. (FAMI) to the ATR Asset Management Group (ATRAM Group).
“In connection with the approval by the board of FMIC to sell its 70% stake in FAMI on Oct. 30, FMIC and MET Holdings, Inc. of the ATRAM Group, have signed the share purchase agreement on Oct. 30,” the Ty-led bank said in a disclosure to the stock exchange on Thursday.
“The completion of the transaction is contingent upon the fulfillment of the conditions specified in the agreement.”
Under the transaction, FMIC will sell 1,050,000 common shares representing 70% of the issued and outstanding capital stock of FAMI to a consortium made up of the ATRAM Group, led by its parent firm ATRAM Investment Management Partners Corp., and MET Holdings.
FMIC earlier said it is selling its majority stake in its asset management arm “as part of its strategy to focus on the investment banking business.”
FAMI is the principal distributor, administrator and fund manager of First Metro Philippine Equity Exchange-Traded Fund, Inc. and FMIC’s mutual funds.
It was founded in 2005 by FMIC as a joint venture with the Catholic Educational Association of the Philippines and Marist Brothers Congregation Philippines, Inc.
Meanwhile, the ATRAM Group operates through ATRAM Trust and ATR Asset Management, Inc., managing portfolios made up of mutual funds, trust assets, insurance portfolios, and real estate for its clients. It had assets under management of over P385 billion at end-September.
Metrobank’s attributable net income rose by 11.35% to P12.124 billion in the third quarter, bringing its nine-month net profit to P35.729 billion, up by 12.4% year on year.
Its shares declined by P3.45 or 4.34% to close at P76 apiece on Thursday. — A.M.C. Sy