GT Capital Holdings Inc. has bought out for P1.4 billion the majority stake in Charter Ping An Insurance Corp., a nonlife insurance firm where GT Cap’s First Metro Investment Corp. also has an interest.
A disclosure to the Philippine Stock Exchange on Tuesday showed that the George Ty-led conglomerate has acquired 2.3 million common shares of Charter Ping An at a fixed price of P614.3 a share for a total consideration of P1.4 billion.
The acquisition represents 66.7 percent of the nonlife insurance firm’s outstanding capital stock. First Metro owns the remaining 33.3 percent of Charter Ping An.
“The consolidation of Charter Ping An into GT Capital is timely given the encouraging prospects for growth in the country’s nonlife insurance industry,” GT Capital Chairman Arthur Ty said.
“This capacity for expansion is largely driven by the sustained robust performance in the auto, property and financial services sectors. The acquisition also provides strong synergy with our existing businesses,” he added.
According to GT Cap, the acquisition of Charter Ping An was validated through an independent valuation exercise, including a third party fairness opinion.
“It also closely adheres to GT Capital’s business model of investing in market-leading companies that possess strong growth potential,” GT Cap further said.
GT Cap cited that Charter Ping An ranked second in terms of net income last year and fourth in net premium written (NPW) among the 67 nonlife insurance companies operating in the Philippines.
Over the past three years, Charter Ping An realized a 27-percent compound annual growth rate for its NPW, outperforming the whole nonlife insurance industry, which grew by 10.5 percent.