AYALA CORP. has signed an agreement to sell 50% of its stake in AC Ventures Holding Corp. (ACV) to Japan’s Mitsubishi Corp. for at least P18.4 billion, a transaction that could increase the valuation of GCash ahead of its planned public listing.
The two companies signed the investment agreement on March 31, Ayala Corp. said in a regulatory filing on Wednesday.
Mitsubishi will subscribe to 18.03-million common and redeemable preferred shares of ACV as part of the transaction.
After the transaction, Ayala Corp. and Mitsubishi will each hold 50% of ACV.
ACV owns 13% of Globe Fintech Innovations, Inc. (Mynt), which has two fintech companies, G-Xchange Inc., the operator of GCash, and Fuse Lending, a tech-based microlender.
Ayala Corp. said the investment will be finalized only after receiving approval from the Securities and Exchange Commission for the amendment of ACV’s articles of incorporation and from the Philippine Competition Commission.
“ACV shall use the subscription proceeds to redeem Ayala Corp.’s redeemable preferred shares in ACV and cover related costs,” Ayala Corp. said.
Ayala Corp. said in October last year that Mitsubishi could help Mynt’s overseas growth as well as in areas like cloud-based payments and new credit algorithms.
“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,” Ayala Corp. President and Chief Executive Officer Cezar P. Consing previously said.
The deal comes as GCash prepares for an initial public offering (IPO) later this year, with the company reportedly aiming for a valuation of at least $8 billion.
For 2024, Ayala Corp.’s core net income increased 10% to a record P45 billion, led by strong performance in banking, real estate, telecommunications, and renewable energy.
The conglomerate has allotted P230 billion for its consolidated capital expenditures this year.
Ayala Corp. shares were unchanged at P591 per share on Wednesday. — Revin Mikhael D. Ochave
