George ty-owned GT Capital Holdings Inc. said it raised $222.9 million (P9.83 billion) from an overnight sale of shares held by two of its largest shareholders.
In a statement, the company said its two largest shareholders — Grand Titan Capital Holdings Inc. and Ty family members — jointly sold 5 percent of GT Capital’s outstanding shares to investors for $222.9 million.
Grand Titan is the private holding firm of the Ty family representing the group’s equity interests in GT Capital.
The common shares marketed to several institutional investors were sold at P1,130 each or a 4.2 percent discount from the previous day’s (February 2) closing price of P1,180 apiece.
GT Capital shares fell Tuesday on news of the discounted share sale but recovered to close the day as one of the biggest gainers. The stock closed at P1,200 per share, up 1.69 percent.
GT Capital said 68 percent of the shares was taken up by foreign institutional investors while 32 percent was acquired by domestic institutional investors.
Goldman Sachs was appointed as the sole global coordinator and sole international bookrunner, while First Metro Investment Corp. acted as the sole domestic lead manager and domestic bookrunner.
“Use of proceeds include Grand Titan’s participation in the recently announced Metropolitan Bank & Trust Company (Metrobank) stock rights offer, among others.
The sale was also in response to several reverse inquiries regarding additional GT Capital shares from investors,” the company said in a statement.
With the transaction, Grand Titan and the Ty family still hold majority shareholdings in GT Capital at 54.31 percent from the previous 59.31 percent.
Last month, the board of GT Capital’s banking arm Metrobank approved a stock rights offering to increase its common equity tier 1 by up to P32 billion. The additional capital is seen to further improve Metrobank’s capital ratios, keeping it well above the Philippine Basel III requirements.
For this year, GT Capital is allotting more or less P50 billion for its capital expenditures (capex), or rough the same amount it spent last year. The 2015 capex is expected to provide bulk to the firm’s automotive business through Toyota Motors Philippines.
GT Capital’s January to September consolidated net income last year decreased by 17 percent to P6.3 billion from P7.7 billion in the same period a year earlier on the lack of extraordinary trading gains. However, revenues rose 37 percent to P104.9 billion from P76.8 billion previously.
The company said it is “on track” to meet its target of low to mid-teens growth—13 percent to 15 percent—in net income for full-year 2014.
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.).