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 further increase its direct ownership of the company to 60 percent early next year.
The initial stake was bought for P502.25 million from investment banking unit First Metro Investment Corp. (FMIC).
This is in line with the Ty group’s thrust of transferring the investment banking unit’s businesses that are not part of its core operations to the parent company.
Japanese partner Mitsui & Co. Ltd. owns 40 percent of the Toyota dealership company 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. The dealership will 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 statement.
Citing best corporate governance practice, since this is a transaction between related parties, GT Capital told the Philippine Stock Exchange yesterday 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 services such as periodic maintenance as well as both minor and major vehicle repairs.
As of the end of 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.