The transaction, disclosed on Monday and first reported by InsiderPH in its InsiderInfo column, calls for the merger between Union Bank Investment Management and Trust Corp. (UBIMTC) and ATRAM Trust Corp. (ATC), with ATC as the surviving entity.
In exchange, UnionBank—one of the country’s top banks—will effectively sell its trust business for a 27.5-percent stake in ATR Asset Management Inc.
Management’s view
“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 milestone
“This merger represents a milestone for ATRAM as we align with UnionBank, a leader in digital innovation,” said Michael V. Ferrer, CEO at ATRAM.
“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,” he added.
Fund management industry undergoes consolidation
Last Oct. 30, ATRAM also announced the acquisition of the Ty family’s First Metro Asset Management Corp. This follows its investment in British insurer Pru Life’s local fund management arm in 2023.
“The merger [with UnionBank] will create a leading player in the trust industry with combined assets under management (AUM) of over P485 billion based on the latest data, significantly increasing scale and capabilities,” the joint statement showed.
“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,” it added.
What’s next?
The investment and merger are subject to regulatory approvals. The firms said they will also follow a “rigorous evaluation process to ensure a seamless integration that prioritizes client service and employee well-being.”
AlphaPrimus Advisors acted as financial advisor to ATRAM while Exchange Equity Partners served as financial advisor to UnionBank in the transaction.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
