April 18, 2017 11:00 pm JST

GT Capital raises stake in Metrobank

Listed Philippine conglomerate's founding family tightens control

CLIFF VENZON, Nikkei staff writer

GT Capital Holdings acquires another 9.62% of Metropolitan Bank & Trust. (Photo by Masayuki Kozono)

MANILA -- Philippine conglomerate GT Capital Holdings said on Tuesday it will acquire another 9.62% of Metropolitan Bank & Trust, the second largest bank by assets in the Philippines, raising its stake to 36.09%.

GT Capital will purchase 306 million secondary shares held by companies owned by the family of George Ty, chairman emeritus of one of the country's biggest conglomerates, according to a stock exchange filing. The purchase is valued at 24.72 billion pesos ($498 million) and requires regulatory approval.

The transaction will enable GT Capital to benefit from the steady earnings of Metrobank, which recorded net income of 18.1 billion pesos last year, down 3% due to reduced growth in interest earnings.

The transaction will bring GT Capital more into line with other conglomerates that have shares in banks. For instance, SM Investments owns 40.09% of BDO Unibank, the nation's largest lender by assets.

The Ty family is also tightening control over the listed conglomerate. According to the same stock exchange filing, family holding company Grand Titan Capital Holdings will buy 18.30 million primary shares of GT Capital worth 21.68 billion pesos. The transaction will raise Grand Titan's stake to 55.93% from 51.30%.

GT Capital's other interests include insurance, real estate, and the local Toyota dealership. It has also invested in power generation through an alliance with Metro Pacific Investments. Its net income in 2016 grew by 21% year on year to 14.6 billion pesos, driven by the car dealership and power

Asia300

GT Capital Holdings, Inc.

Philippines

Market(Ticker): PHS(GTCAP)
Sector:
Industry:
Producer Manufacturing
Industrial Conglomerates
Market cap(USD): 4,395.43M
Shares: 174.3M
Asia300

SM Investments Corp.

Philippines

Market(Ticker): PHS(SM)
Sector:
Industry:
Retail Trade
Department Stores
Market cap(USD): 17,551.01M
Shares: 1,204.58M
Asia300

BDO Unibank, Inc.

Philippines

Market(Ticker): PHS(BDO)
Sector:
Industry:
Finance
Regional Banks
Market cap(USD): 10,480.20M
Shares: 4,367.33M
Asia300

Metro Pacific Investments Corp.

Philippines

Market(Ticker): PHS(MPI)
Sector:
Industry:
Finance
Real Estate Development
Market cap(USD): 4,148.85M
Shares: 31,504.18M

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