TY-LED conglomerate GT Capital Holdings, Inc. said on Wednesday its Board of Directors has approved the acquisition of a 20 percent stake in Sumisho Motor Financing Corp. (SMFC) for P380 million as the company forays into micro-financing.
GT Capital will acquire 2 million SMFC common shares for P94.98 apiece from Philippine Savings Bank and another 2 million shares from PS Bank Retirement Fund for a total of 4 million SMFC shares.
“The purchase of SMFC shares will allow GT Capital’s entry into micro-financing, specifically motorcycle financing, a high growth sector in the Philippines,” GT Capital said in a filing to the Philippine Stock Exchange.
“In addition, it will give the group an opportunity to tap the low to middle income sector of the Philippine market—the primary clientele of SMFC,” it added.
It said the acquisition will also strengthen the group’s strategic relationship with Sumitomo Corp., one of Japan’s top conglomerates.
Sumitomo Corp. is one of the joint venture partners that put up SMFC. The other partners are PSBank, PSBank Retirement Fund, and Sumitomo Corporation of the Philippines
Payment of the purchase price will be made on or before August 11, 2017.
GT Capital Holdings is the holding company for the diversified business interests of taipan George Ty in the Philippines.
It holds interests in banking (including the Metrobank Group and thrift banking arm PS Bank) property development; automotive assembly, importation, distribution, dealership and financing; life and non-life insurance; and infrastructure and utilities.