Conglomerate Ayala Corp. agreed to sell 50 percent of AC Ventures Holding Corp. (ACV) to Japan’s Mitsubishi Corp. for at least P18.4 billion.
The deal will give Mitsubishi a 6.5-percent stake in Gcash as AC Ventures owns about 13 percent of Globe Fintech Innovations, Inc. (Mynt), which operates two fintech companies: G-Xchange Inc., the operator of GCash, and Fuse Lending, a micro-lender.
“The needed corporate approvals had been completed for the acceptance by AC of a binding offer from MC to invest inAC-owned AC Ventures Holding Corp. which will serve as the joint venture entity that will explore consumer-related and digital opportunities in the Philippines,” Ayala said in a disclosure to the stock exchange Friday.
The deal is aligned with Ayala’s strategic priority to support the growth of clear business winners within its portfolio. The sale is subject to regulatory approvals.
Ayala said Mitsubishi, Japan’s largest trading company, could help Mynt expand both internationally and within Japan. This includes opportunities in cloud-based payments and new credit solutions.
Ayala and Mitsubishi have a long-standing partnership dating back to 1974. The partnership has included projects in various sectors such as renewable energy and auto dealerships.
They are now renewing their collaboration to support the Philippines’ growing economy, which is among the fastest in the region.
“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,” said Cezar Consing, president and chief executive of Ayala Corp.
Ayala, through AC Ventures Holdings Inc., said in August it is increasing its ownership in Mynt by acquiring an additional 8 percent, raising its overall share to 13 percent for P22.4 billion.
MUFG Bank Ltd., Japan’s largest bank, also infused $393 million into Mynt, representing an 8-percent stake.
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