GT Capital raises stake in Metrobank
Listed Philippine conglomerate's founding family tightens control
CLIFF VENZON, Nikkei staff writer
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