GT Capital taking over Toyota dealership unit

AP FILE PHOTO

MANILA, Philippines—Tycoon George Ty-led conglomerate GT Capital Holdings Inc. has acquired 40.7 percent of car dealership unit Toyota Manila Bay Corp. (TMBC) and intends to hike its direct ownership to 60 percent early next year.

The initial stake was bought for P502.25 million from investment banking unit First Metro Investment Corp. (FMIC) as the Ty group continued to transfer businesses which are not part of core banking operations from the banking group straight into the parent conglomerate.

With this transaction, Japanese partner Mitsui & Co. Ltd. owns 40 percent of the Toyota dealership firm while FMIC holds the remaining 19.3 percent, the block which is expected to be sold to GT Capital.

“GT Capital’s objective is to increase its direct ownership in TMBC to 60 percent by the first quarter of next year inasmuch as the dealership shall significantly contribute to the high level of business synergies within the GT Capital group, particularly with our auto-financing and non-life insurance product lines,” GT Capital president Carmelo Maria Luza Bautista said in a press statement.

Citing best corporate governance practice given that this is a transaction between related parties, GT Capital told the Philippine Stock Exchange on Thursday that the acquisition of TMBC had undergone an independent valuation exercise and secured third party fairness opinion. The company said its corporate governance committee had also cleared the initiative.

TMBC exclusively sells and distributes Toyota vehicles, spare parts and accessories. It also provides after-sales service such as periodic maintenance as well as both minor and major vehicle repairs.

As of end-2012, TMBC sold the most number of Toyota vehicles in the Philippines among all Toyota dealership units, accounting for 10 percent of all Toyota cars sold during this period.