GT Capital buys 40.7% of Toyota dealership

GT Capital Holdings Inc., the listed investment firm of taipan George Ty, on Thursday said it bought over 40 percent of Toyota Manila Bay Corp. (TMBC) for P502.25 million.

 

In a disclosure to the Philippine Stock Exchange, GT Capital said it acquired 101.875 million common shares or 40.7 percent of TMBC on Dec. 18 at a fixed price of P4.93 apiece.

 

"The shares acquired by GT Capital were from companies within the group," Joey Crisol, vice president for investor relations, told GMA News Online, but declined to name the companies.

 

The transaction underwent an independent valuation exercise and secured a third party fairness opinion and was cleared by GT Capital's corporate governance committee, according to the company.

 

TMBC exclusively sells and distributes Toyota vehicles, spare parts and accessories, and also provides after-sales service that include periodic maintenance and vehicle repairs.

 

It sold the most number of Toyota vehicles in the country as of end-2012, accounting for 10 percent of all units sold.

 

"GT Capital's objective is to increase its direct ownership in TMBC to 60 percent by the first quarter of next year, inasmuch as the dealership shall significantly contribute to the high level of business synergies within the GT Capital group," president Carmelo Maria Luza Bautista was quoted as saying.

 

He added that the acquisition will support the company's auto-financing and non-life insurance product lines. GT Capital is also a majority owner – 51 percent – of carmaker Toyota Motor Philippines Corp.

 

Crisol noted TMBC will remain separate from Toyota Motor Philippines. "Toyota Motor Philippines is an importer and assembler of Toyota vehicles while TMBC is a franchise holder to sell Toyota vehicles," he said.

 

The target to reach 60 percent equity in TMBC will depend on "how negotiations with other shareholders pan out," he added. 

 

Other shareholders of the TMBC are Mitsui & Co. Ltd. of Japan, which owns 40 percent, and First Metro Investment Corp. with 19.3 percent. – VS/RSJ, GMA News