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The Zobel family’s Ayala Corp. (AC) has closed the sale of a 6.5-percent stake in GCash owner Globe Fintech Innovations Inc. (Mynt) to long-time partner Mitsubishi Corp. for ₱18.4 billion after the deal was cleared by the anti-trust watchdog Philippine Competition Commission (PCC).
In a disclosure to the Philippine Stock Exchange (PSE), Ayala said it has sold half of wholly owned AC Ventures Holding Corp. (ACV) to Mitsubishi. ACV owns about 13 percent of Mynt.
Mynt has two financial technology (fintech) companies: G-Xchange Inc., the mobile wallet operator of GCash, and Fuse Lending, a tech-based microlender.
The PCC has cleared the deal after finding that Mitsubishi’s investment in ACV would not significantly reduce competition in the market for QR code-based digital payments to merchants.
The PCC noted in its decision the relatively small market share held by GCash in the provision of QR-based person-to-merchant payments.
Additionally, the PCC cited the strong governmental push for interoperability in QR-based payments in the country as a factor in its approval.
Person-to-merchant payments, facilitated by QR codes, enable businesses to accept digital payments from consumers for goods and services.
While Mitsubishi indirectly owns Lawson Philippines, a convenience store chain that accepts QR code-based payments from consumers, the PCC said that its limited presence means the transaction would not result in a substantial lessening of competition.
“Mitsubishi, Japan’s largest trading company, can help Mynt grow overseas and within its own significant Japan-based ecosystem, and in areas like cloud-based payments and new credit algorithms,” Ayala said.
Ayala and Mitsubishi entered into a partnership and cooperation agreement in 1974 that has since featured industrial estates, renewable energy (RE) projects, a water utility, and auto dealerships.
Ayala President and Chief Executive Officer (CEO) Cezar P. Consing said earlier that, “We believe Mitsubishi can add meaningful value to Mynt, which will allow Mynt to deliver significant value to its over 94 million registered users.”
ACV will serve as Ayala and Mitsubishi’s joint venture (JV) entity that will explore consumer-related and digital opportunities in the Philippines.
“These initiatives are aligned with AC’s strategic priority to support the growth of clear business winners within its portfolio,” Ayala said.
Ayala had previously invested ₱22.4 billion for the acquisition of an additional eight percent of Mynt from its unnamed shareholders. The additional Mynt shares were bought through ACV to increase its stake in Mynt to 13 percent.
ACV acquired a total of 157.62 million Mynt common shares from existing shareholders at ₱141.836 per share. This transaction values Mynt at approximately ₱286.4 billion or $5 billion.
Ayala said the increased stake in Mynt allows AC to further benefit from GCash’s success and strong long-term growth potential.
