Singapore's sovereign wealth fund GIC and Philippine conglomerate Ayala Corporation have acquired a combined 9.9 percent indirect stake in the Bank of the Philippine Islands (BPI) for 29.6 billion pesos (680 million U.S. dollars), they said in a joint statement on Tuesday.

They acquired the indirect ownership stake by taking over a remaining ownership stake in Ayala DBS Holdings, which holds the 9. 9 percent stake in BPI, from Singapore's largest bank DBS.

Through the transaction, GIC and Ayala effectively acquired 5.6 percent and 4.3 percent of the shares in BPI, respectively.

Accordingly, Ayala's total ownership in BPI will increase from 44 percent to 48.3 percent.

DBS, which has been a strategic investor in the Philippine bank since 1999, said the divestment is "in line with DBS's focus on its core markets."

GIC said its investment is a recognition of BPI's long-term value and the Philippine economy's strong fundamentals and growth prospects. Endi