Land Bank of the Philippines has received the approval of its board to purchase the Philippine Postal Savings Bank at zero value.

The zero value deal has been agreed at due to Postal Bank’s negative valuation of around PHP480m ($9.3m). Land Bank will inject PHP1bn ($19.5m) into Postal Bank to cover for the negative valuation.

Philippine Postal will be converted into a bank serving overseas Filipino workers following the takeover and rebranded as Overseas Filipino Bank (OFW Bank).

OFW Bank will serve as Land Bank’s remittance-marketing division. The first OFW centre will be piloted in Dubai in Junary 2018, followed by another in Bahrain in April 2018.

The deal will now be presented to the Governance Commission for Government-Owned or -Controlled Corporations for approval.