BAC Announces Intention to Acquire a Majority Stake and then Merge with Multibank

Panama City: Through a significant event announcement published on its website, BAC Holding International Corp. (“BHI”) has informed the market that its Board of Directors has agreed to convene a Shareholders’ Meeting “in order to deliberate and decide on the relevant aspects related to the potential purchase by BAC International Corporation (BIC), a subsidiary of BHI, of 99.56906% of the shares of Multi Financial Group, Inc.”  BAC International Corp. (“BIC”) is the Panamanian holding entity that owns 99.996% of the issued and outstanding shares of BAC International Bank, Inc. (“BIB”), and Multi Financial Group Inc. (“MFG”) is the Panamanian holding entity that owns 100% of the issued and outstanding shares of Multibank, Inc., and subsidiaries, which include Multibank Seguros, SA, and Multi Securities, Inc. 

The transaction will be completed once the relevant shareholders’ meetings and boards of directors authorize the signing of the agreements and once regulatory bodies grant their respective approval. With this transaction, the resulting entity after the eventual merger will strengthen its position, where it would be among the top 3 largest banks in Panama and as the bank with the largest market share in Central America with more than $43 billion in assets, $30 billion in portfolio and $32 billion in deposits, in addition to reaffirming its leadership in various market segments and serving more than 6 million customers in the six countries where it operates.  “BAC is at the perfect moment to complete this transaction. In recent years, we have grown consistently and sustainably, which allows us to pursue this acquisition and further accelerate the generation of triple value.

The subsequent merger would allow us to consolidate two organizations with more than 120 years of experience and strengthen the value proposition for banking customers,” emphasized Rodolfo Tabash Espinach, Chairman of the Board of Directors of BIC and CEO of BAC.  “This decision reflects the strong confidence that Panama generates as an engine of economic growth in the region, and the optimism for the future, supported by the stability, strategic vision, and talent of our people, whose dedication and capacity are essential to building an environment conducive to investment and sustainable development,” added Ramón Chiari Brin, CEO of BAC Panama.  During the transition process, each bank will continue to operate normally and provide their respective financial services.  Both entities reaffirm their commitment to their customers, guaranteeing the continuity of services, the security of their operations, and the support of a highly trained team. Customers will continue to receive the same quality service and will be able to continue using their usual products and channels without interruption.  This stage will continue until the corresponding approvals are granted and the integration and subsequent merger process is completed.