Ayala seals GCash investment deal with Mitsubishi for P18.4 billion

MANILA, Philippines — Conglomerate Ayala Corp. and Mitsubishi Corp. have executed an investment agreement for the Japanese multinational’s acquisition of a 6.5-percent stake in e-wallet giant GCash.

In a stock exchange filing, Ayala said it signed an investment agreement with Mitsubishi for the latter’s subscription to 18.03 million common and redeemable preferred shares of AC Ventures Holding Corp. (ACV) for at least P18.4 billion.

Ayala and Mitsubishi will each own a 50-percent ownership stake in ACV after the transaction.

ACV holds a 13-percent stake in Globe Fintech Innovations Inc. (Mynt), the parent of GCash.

Mitsubishi’s investment will only be completed after satisfaction of conditions precedent, including the approval by the Securities and Exchange Commission of the amendment of the articles of incorporation of ACV and the approval of the Philippine Competition Commission.

The subscription proceeds will be used to redeem Ayala’s redeemable preferred shares in ACV and cover related costs.

Ayala president and CEO Cezar Consing earlier said the entry of Mitsubishi in ACV would help GCash expand its presence abroad.

“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,” Consing said.

Mitsubishi, Japan’s largest trading company, is expected to help Mynt grow overseas and within its own significant Japan-based ecosystem as well as in areas like cloud-based payments and new credit algorithms.