Asia United Bank, the Philippine bank, has taken over the operations of local player Asiatrust Development Bank in a deal that expands the former's 74-branch network in the country by 28 more.

Financial terms of the deal were not disclosed but it is known that the acquisition will add some PHP6 billion to AUB's current PHP52 billion ($1.2 billion) balance sheet. The purchase does not include Asiatrust's PHP250 million trust assets.

Asiatrust is majority owned by the Garcia family, while the Social Security System and Asian Development Bank own 19.13 per cent and 7.55 per cent, respectively. With the transaction, shareholders of Asiatrust may keep the publicly-listed holding firm but will be required to give up its banking licence. 

Asia United Bank is owned by biscuit and real estate magnate Jacinto Ng, one of the 40 richest men in the Philippines with an estimated net worth of $115 million, according to Forbes Magazine. 

The transaction is expected to close within the first half of this year.