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Multibank Panama sold to BAC parent company

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Multibank  Panama  sold to  BAC parent company.

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Posted 31/10/2019

Grupo Aval, the owner in Panama of BAC, has reached an agreement to acquire  Multibank Financial Group , the holding company of Multibank Panama.

Grupo Aval said that the transaction, which will be carried out through its subsidiary Banco de Bogotá, represents an important step in its regionalization strategy.

"Panama is the country in Central America with the highest credit rating by international agencies," said Grupo Aval CEO Luis Carlos Sarmiento Gutiérrez

At the end of June, Multibank Financial Group assets amounted to $5, billion. In the year ended June, the benefit of the Multibank Financial Group was $60 million. With the transaction, the Colombian group will add around 100,000 new clients in Panama

The operation, which must still be approved by the regulatory authorities, could be closed in the second quarter of 2020. 

 

https://www.newsroompanama.com/business/multibank-panama-sold-to-bac-parent-company

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Multibank Panama Changes Ownership

After Grupo Aval S.A. of Colombia signed an agreement to acquire Multibank Financial Group of Panama, the transaction process is expected to be completed in the second quarter of 2020.

Friday, November 1, 2019

For Grupo Aval de Colombia S.A., owner of BAC Credomátic, this transaction represents an important step in the development of its regionalization strategy, since up to June 2019 Multibank Financial Group (MFG), holding company of Multibank Panama, had assets of approximately $5 billion and a book equity of $560 million, the Colombian group informed on October 31st.

You may be interested in "Panama: Loan Portfolio Up 2%"

In the last twelve months ended June 2019, MFG's net income was approximately $60 million. The transaction will add more than 100,000 new customers, the statement explains.

Luis Carlos Sarmiento Gutiérrez, President and CEO of Grupo Aval, said that "... this attractive transaction is complementary to the lines of business in which the Group already participates in Panama. In addition, with the consolidation of this agreement, Aval will strengthen its leadership position in Central America and will become the second largest player in Panama by asset size."

Sarmiento added that "... Panama is the country best rated by international agencies, which is why, within our strategy was the purpose of expanding our operation in that market."

 

https://www.centralamericadata.com/en/article/main/Multibank_Panama_Changes_Ownership

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BAC Panama and Multibank to Compete Separately

Although Grupo Aval S.A. de Colombia owns both financial entities, the conglomerate has decided that the two banks will compete separately in the Panamanian market.

Monday, December 2, 2019

Early last month it was reported that Grupo Aval de Colombia S.A., owner of BAC Credomatic, signed an agreement to acquire Multibank Financial Group of Panama, and according to the business group, the transaction process is expected to be completed in the second quarter of 2020.

After Grupo Aval took over the shares of two financial institutions in the Panamanian system, the decision was announced that both institutions will operate independently.

You may be interested in "Panama: Loan Portfolio Up 2%"

Rodolfo Tabash, president & CEO BAC Credomatic Network, told Elcapitalfinanciero.com that "...'When you merge two banks or two companies it is not an arithmetic sum where 1 plus 1 is 2, because when two companies merge that one plus one is going to give you 1.75, because there is a lot of value destruction. Why? Because there are always customers who leave, many employees leave and many businesses are lost. And what we saw is the experience we have in Colombia, where Grupo Aval is the largest financial group in deposits, portfolio and profits and that has been achieved with four banks, Banco de Bogotá, AV Villas, Banco de Occidente and Banco Popular, which operate in the same plaza, but with market niches, culture and specific segments'."

Tabash added that "... both entities will share the same technological platform since BAC Network has invested almost $1 billion in technology in recent years, which means that on day one of Multibank's incorporation into Grupo Aval, it will have access to a platform that will allow it to improve in areas such as customer service, digitalization of services, security and development of new products."

According to Aval, this transaction represents an important step in the development of its regionalization strategy, since up to June 2019 Multibank Financial Group (MFG), holding company of Multibank Panama, had assets of approximately $5 billion and a net worth of $560 million.

 

https://www.centralamericadata.com/en/article/main/BAC_Panama_and_Multibank_to_Compete_Separately

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Panama: Sale of Multibank Authorized

The Superintendence of Banks authorized the transfer of up to 100% of the issued and outstanding shares of Multibank in favor of Leasing Bogotá S.A.

Friday, April 3, 2020


Resolution SBP-0053-2020 dated March 24, 2020, explains that "... Authorizes the transfer of up to 100% of the issued and outstanding shares of Multi Financial Group, INC. in favor of Leasing Bogotá, S.A. Panama, which produces as a consequence the change of control of Multibank Inc. and its subsidiaries, in accordance with the terms and conditions established in the proposed transaction."

 

https://www.centralamericadata.com/en/article/main/Panama_Sale_of_Multibank_Authorized

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With the temporary closing of the Boquete branch of Multibank, how can we conduct our banking needs? Deposits, withdrawals (other than the one ATM in Alto Boquete), making change, etc. Any reciprocal agreement with another bank? Making a special trip to David?

Thanks

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We also bank at Multibank (and only Multibank). We have been pleased with customer support over the past many years, but NOT found a good solution to this current issue. The way I drive (it takes an hour for me to get to David) means that going to the Multibank branch in David is not an option. And other people who can make it to David and back in the allotted time window can't do our personal banking for us; it has to be us at the window.

There are a lot of things we used to take for granted that now are under our looking glass for reassessment.

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After a review of all of it I am confused.   The point of confusion is whether the Multibank entity now acquired by the larger Leasing Bogota",SA,  will still function.   That seemed to be the implication in the early articles.   I am wondering if Multibank will be using the  platforms of the mother organization. ?  I do hope so.   .............................Alison

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I suspect the Boquete branch will re-open.

If not, I will miss the excellent service provided by their wonderful personnel.

  • Upvote 1

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