Ayala Corporation, Mitsubishi seal P18.4-billion deal for GCash stake

This is AI generated summarization, which may have errors. For context, always refer to the full article.

Mitsubishi Corporation will own a 6.5% slice of GCash following the deal

MANILA, Philippines – Ayala Corporation (AC) finalized a P18.4-billion deal to sell half of its venture capital firm’s shares in mobile wallet GCash.

In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, April 2, AC said it signed an investment agreement with Mitsubishi for the latter’s subscription of over 18 million shares in AC Ventures (ACV) for at least P18.4 billion.

ACV holds a 13% stake in GCash’s parent firm Mynt.

Mitsubishi and AC will each own half of ACV following the deal. This gives Mitsubishi a 6.5% slice of the fintech unicorn.

The deal will be considered complete after the Securities and Exchange Commission (SEC) approves ACV’s amended articles of incorporation, as well as approval by the Philippine Competition Commission.

AC first announced the deal in October 2024. Its president and chief executive officer Cezar Consing earlier said the move can help Mynt expand its services overseas.

“We believe Mitsubishi can add meaningful value to Mynt, which will allow Mynt to deliver significant value to its over 94 million registered users,” he said.

GCash was valued at $5 billion in 2024. Globe Telecom earlier said 80% of Filipinos have an account with the e-wallet.

Mynt contributed around 12% of Globe’s net income before tax in 2024 as GCash solidified its dominance in the local e-wallet scene.

Mitsubishi’s investment comes as investors eagerly await GCash’s anticipated public listing in the second quarter.

Globe’s president and CEO Ernest Cu also expressed hope that the SEC would consider exempting GCash from the minimum public float requirement, or the required number of shares that can be publicly traded.

Public companies are required to have at least 20% of its shares available for public trading.

The SEC and Philippine Stock Exchange earlier announced that they agreed to reduce the public float requirement to 15%, subject to “strict requirements.”

However, the corporate watchdog said it remained firm in implementing the 20% float requirement for companies that wish to conduct an initial public offering.

“The float requirement also seeks to reduce ownership concentration and encourage good corporate governance, ultimately strengthening the Philippine capital market,” the SEC explained in a statement. – Rappler.com