GT Capital acquires Toyota dealer stake

AP FILE PHOTO

MANILA, Philippines—Tycoon George Ty-led conglomerate GT Capital Holdings Inc. has completed the takeover of a 60-percent direct stake in car dealership unit Toyota Manila Bay Corp. (TMBC).

The acquisition of direct shares in TMBC improves the synergies among the automotive, banking and insurance businesses of GT Capital, the conglomerate said in a disclosure to the Philippine Stock Exchange (PSE).

“It is expected that the transaction will improve GTCAP’s net income,” the disclosure said.

An initial stake of 40.7 percent was acquired from the Metrobank group’s investment banking unit First Metro Investment Corp. (FMIC) last year as the Ty group continued to transfer businesses that were not part of core banking operations from the banking group straight into the parent conglomerate. The remaining 19.25-percent block held by FMIC was likewise sold to GTCAP.

Japanese partner Mitsui & Co. Ltd. continues to own the remaining 40 percent of TMBC.

By increasing its direct ownership in TMBC, GTCAP seeks to harness synergies among various subsidiaries on autofinancing and nonlife insurance product lines.

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.

As a brand, 2013 was a banner year for Toyota as sales across all dealership networks reached 75,587 units, marking the company’s highest annual sales performance since it started operations in 1988. Toyota’s vehicle sales in 2013 surpassed its target of 75,000 units and represented a 15.6-percent increase compared to the sales of 65,396 units in 2012.—Doris C. Dumlao