Metrobank’s FMIC to sell shares in asset management arm to ATRAM

FIRST METRO Investment Corp. (FMIC), the investment banking arm of Metropolitan Bank & Trust Co. (Metrobank), will sell its shares in First Metro Asset Management, Inc. (FAMI) to the ATR Asset Management Group (ATRAM Group).

FMIC’s board of directors on Oct. 30 approved the sale of its FAMI shares to the ATRAM Group “as part of its strategy to focus on the investment banking business,” the Ty-led bank said in a disclosure to the stock exchange on Wednesday.

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 investment holding company MET Holdings, Inc., First Metro Philippine Equity Exchange Traded Fund, Inc. (First Metro ETF) said in a separate disclosure.

“The entry of the ATRAM Group will not affect the company’s current leadership team to ensure continuity and stability of the company’s operations. Meanwhile, FAMI’s quality of service will remain unchanged and most importantly, clients can rely on the same dedication and expertise that it has always provided,” it said in a statement.

A share purchase agreement will be executed between FMIC and MET, with the completion of the transaction subject to the fulfillment of the deal’s conditions, it added.

“The ATRAM Group is a reputable and respected player in the industry for its expertise in fund management. We are confident that it can carry out what we have started in FAMI and even bring the company to greater heights,” FMIC President Antonio R. Ocampo, Jr. was quoted as saying in the firms’ joint statement.

“FAMI is a valuable acquisition for us as we aim to expand our fund management operations in the country. It is a strategic business move given its mix of funds,” said Manuel N. Tordesillas, ATR Holdings president and ATRAM Trust Corp. chairman.

Mr. Tordesillas assured FAMI’s clients that there would be a “smooth transition and uninterrupted continuation of business” following the transaction.

“Part of FAMI’s mission is to be a trusted steward who promotes investment literacy, creates innovative investment solutions, and provides exceptional customer experience, thereby transforming Filipinos from savers to investors. ATR Holdings and ATRAM are enthusiastic to be given the opportunity to carry out FAMI’s mission further,” he added.

FAMI is the principal distributor, administrator and fund manager of First Metro ETF and FMIC’s mutual funds.

It was founded in 2005 by FMIC as part of 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.

On the other hand, Union Bank of the Philippines, Inc. (UnionBank) confirmed in a separate disclosure there are ongoing discussions to merge its trust business with the ATRAM Group with the latter as the surviving entity, but added that nothing has been finalized.

Metrobank’s net income rose by 11.35% to P12.124 billion in the third quarter, bringing its nine-month profit to P35.729 billion, up by 12.4% year on year.

Meanwhile, UnionBank saw its net income climb by 20.12% year on year to P3.02 billion in the second quarter. This brought its net profit for the first semester to P5 billion, down by 17.18% year on year.

Shares in Metrobank went up by P3.95 or 5.23% to end at P79.45 each on Wednesday, while UnionBank closed at P37.75 apiece, climbing by P1.20 or 3.28% from the previous day. — AMCS