The Zobel family’s Ayala Corporation is selling to long-time partner Mitsubishi Corporation a 6.5 percent stake in GCash owner Globe Fintech Innovations, Inc. (Mynt) for a minimum of P18.4 billion.
In a disclosure to the Philippine Stock Exchange, Ayala said it has agreed to effectively sell half of wholly-owned AC Ventures Holding Corporation (ACV) to Mitsubishi. ACV owns about 13 percent of Mynt.
Mynt has two fintech companies: G-Xchange Inc., the mobile wallet operator of GCash, and Fuse Lending, a tech-based micro-lender. The transaction is subject to conditions precedent including regulatory approvals.
“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 projects, a water utility, and auto dealerships.
“The two companies are refreshing their partnership with the objective of supporting and capitalizing on the Philippines’ economic growth, which this year ranks among the fastest in the region,” the Zobel-led conglomerate said.
Ayala President and CEO Cezar P. Consing said “We believe Mitsubishi can add meaningful value to Mynt, which will allow Mynt to deliver significant value to its over 94 million registered users.”
“It’s all about serving better the many Filipinos that depend on GCash and Fuse, and for making a wider variety of financial and other products available to as many Filipinos as possible,” he added.
Ayala said the needed corporate approvals had been completed for its acceptance of a binding offer from Mitsubishi to invest in ACV which will serve as the joint venture entity that will explore consumer-related and digital opportunities in the Philippines.
In addition to the binding term sheet signed on Oct. 18, 2024, Ayala and Mitsubishi are also set to execute a memorandum of understanding for comprehensive collaboration to promote further business development in the Philippines and to mark the 50th anniversary of their partnership.
“These initiatives are aligned with AC’s strategic priority to support the growth of clear business winners within its portfolio,” Ayala said.
Ayala had recently invested P22.4 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 P141.836 per share. This transaction values Mynt at approximately P286.4 billion ($5 billion).
Ayala said the increased stake in Mynt allows AC to further benefit from GCash’s success and strong long-term growth potential.
After increasing its stake in Mynt, Ayala said it was in discussions with a strategic investor which has expressed interest in acquiring a portion of its ownership stake in Mynt.
Ayala said earlier that Mitsubishi UFJ Financial Group (MUFG), Japan’s largest banking group and one of the largest financial institutions globally, has acquired an eight percent stake in Mynt through its consolidated subsidiary MUFG Bank, Ltd.
“We are thrilled to welcome MUFG as a new strategic partner. With their global expertise and reach within the financial inclusion space, they will be instrumental in further expanding GCash’s social impact, especially to the underserved,” said Mynt President and CEO Martha Sazon.
She added that, “Alongside this, Ayala’s unmatched commitment to Philippine economic growth and development, and its expertise in multiple industries will accelerate GCash’s mission.”
“GCash is an indispensable infrastructure for everyday life of Filipinos and we are delighted to join Mynt as a strategic investor to support the growth of the company.” said Yasushi Itagaki, Senior Managing Corporate Executive, Head of Global Commercial Banking Business Group at MUFG.
He noted that, “With our investment, we are excited to expand our contribution to the ongoing development of the Philippines’ digital economy and financial inclusion.”