HispanicBusiness

SANTIAGO, CHILE -- (Marketwire) -- 10/11/12 -- CORPBANCA (NYSE: BCA) (BCS: CORPBANCA) announced the entry into an agreement by and among Corp Group Holding Inversiones Limitada and affiliates of Helm Corporation to acquire a 100% equity interest in Helm Bank S.A. through a merger with Banco CorpBanca Colombia S.A., subject to the satisfaction of customary closing conditions. Additionally, CorpBanca intends to acquire an 80% equity interest in Helm Corredor de Seguros S.A., an insurance broker, for US$17.12 million. CorpBanca's management expects the acquisition to close during the first quarter of 2013. Following receipt of the necessary approvals from the Chilean and Colombian regulators and the closing of the acquisition, CorpBanca will consolidate its operations in Colombia, thereby reaffirming its long-term commitment to the Colombian market.

The total purchase price of the acquisition, which includes a 100% equity interest in Helm Bank and its subsidiaries, is US$1.278 billion plus interest accruing on such amount at the rate of 0.5% per month from January 1, 2013, until the purchase price is paid. CorpBanca estimates that the valuation multiples implied in connection with this acquisition will be of 1.63 times Price per Book Value (P/BV) and 14.2 times Price to Earnings per share (P/E per share) up to the closing date, which is expected to occur during the first quarter of 2013.

In order to finance the acquisition, Banco CorpBanca Colombia will increase its capital in an amount not to exceed US$1.000 billion and finance the remainder of the acquisition with its own funds. The proposed capital increase will be subscribed by (i) CorpBanca for approximately US$285 million, (ii) Helm Corporation for approximately US$440 million, and (ii) other investors for an aggregate of approximately US$275 million. CorpBanca will have a controlling interest in the merged bank with an approximate 64% equity interest and Helm Corporation will retain an approximate 20% equity interest.

CorpBanca will also increase its capital by approximately US$600 million, and consider options to finance the acquisition together with CorpBanca's medium-term organic growth in Chile. As announced on October 5, 2012, the equity investment by International Finance Corporation will be a part of this planned increase in capital. The capital increase is expected to occur during the first quarter of 2013.

As of July 31, 2012, Banco CorpBanca Colombia had a 3% market share in the terms of both loans and deposits. As of July 31, 2012, Banco CorpBanca Colombia assets were approximately US$5.200 billion, its loan portfolio was US$3.411 billion (consisting of 60% corporate accounts and 40% personal accounts) and total deposits were US$3.342 billion. Banco CorpBanca Colombia has shown an increase in returns with a Return on Average Equity (RoAE) of 17.4% in the 12 months trailing July 31, 2012 and a BIS ratio of 12.1% as of July 2012.

As of July 31, 2012, Helm Bank was the 7th largest bank in Colombia in terms of total assets and total deposits. As of July 31, 2012, Helm Bank had total assets of US$6.643 billion, loans of US$4.610 billion, total deposits of US$4.510 billion and a net equity of US$739 million. With more than 205,000 customers and 88 branches, Helm Bank specializes in the corporate segment, medium enterprises and personal accounts with middle to high income. In the last five years, Helm Bank has continuously received high customer satisfaction ratings.