GT Capital buys 40% of Toyota Financial

Conglomerate GT Capital Holdings Inc. of the Ty group is buying a 40-percent stake in Toyota Financial Services Philippines Corp. (TFSPC) from the group’s banking arms Metropolitan Bank and Trust Co. and Philippine Savings Bank for P2.1 billion.

TFSPC is one of the country’s leading leasing and financing companies, exclusively catering to Toyota vehicles.

In separate disclosures to the Philippine Stock Exchange on Monday, GT Capital, Metrobank and PSBank said their boards had approved the transaction.

GT Capital said the acquisition of a 40-percent direct stake in TFSPC was part of its strategy “to invest in market leading businesses that bring synergy to its current component companies.”

Founded in 2002 as a three-way partnership among Toyota Financial Services Corp. of Japan, Metrobank and PSBank, TFSPC serves customers of Toyota vehicles through financing and leasing services as well as Toyota dealers through inventory stock financing.

With the sale of the 40-percent interest by Metrobank (15 percent) and PSBank (25 percent), this becomes a partnership between GT Capital and TFS Japan, which will continue to own 60 percent.

The Ty group is likewise in partnership with the Toyota group on automotive manufacturing and distribution in the Philippines.

By selling some assets to the parent conglomerate, the banks are unlocking values from assets and beefing up their capital ratios.

“For Metrobank and PSBank, the transaction is in line with their capital planning initiatives under the new Basel 3 regime,” the disclosure said.

Basel 3 framework, which was implemented in the country at the beginning of this year, introduced a complex package of reforms designed to improve the ability of banks to absorb losses.

The banks agreed to sell their shares in TFSPC at P525 a share, valuing the 40 percent stake at P2.1 billion. Doris C. Dumlao

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