The Ty family’s holding firm GT Capital Holdings Inc. has acquired a 40 percent stake in Toyota Financial Services Philippines Corp. (TFSPC) to expand its automotive portfolio.
GT Capital said it bought Metropolitan Bank and Trust Company’s (Metrobank) 15 percent interest and Philippine Savings Bank’s (PSBank) 25 percent stake in TFSPC for a total of P2.1 billion. The transaction was sealed on Monday via a sale and purchase agreement signed by the board of directors of GT Capital, Metrobank and PSBank.
“The acquisition of shares in TFSPC is part of GT Capital’s strategy to invest in market leading businesses that bring synergy to its current component companies. Upon completion, its direct ownership in TFSPC shall be 40 percent. For Metrobank and PSBank, the transaction is in line with their capital planning initiatives,” the companies said in a joint statement
“The [P2.1 billion] amount was arrived at after an independent valuation exercise and subjected to third party fairness opinion,” it said.
TFSPC is one of the country’s leading leasing and financing companies exclusively catering to Toyota vehicles. GT Capital also owns another auto unit, Toyota Motor Philippines, which is expected to increase its revenue contribution to its parent firm in the next few years.
Earlier, GT Capital Chief Financial Officer Francisco Suarez said that the firm is expecting “higher single digit to lower double digit growth” for the whole year on the strong performance of its real estate (Federal Land Inc.) and automotive (Toyota Motor Philippines) businesses.
GT Capital’s net income declined 34 percent to P4 billion in the first six months of the year from P6.1 billion a year ago, while revenues went up 35 percent to P66.2 billion from P49.1 billion.
First half revenue contributors are: Metrobank, 42.9 percent; Toyota Financial, 29.1 percent; Federal Land, 13.5 percent; and the rest came from its power, life insurance and non-life insurance businesses.
Incorporated in 2007, GT Capital is involved in banking (Metrobank), real estate (Federal Land Inc.), power (Global Business Power Corp.), automotive (Toyota Motor Philippines), insurance (Philippine AXA Life Insurance Corp.), and non-life insurance (Charter Ping An Insurance Corp.).