George Ty's GT Capital buys majority stake in dealer Toyota Cubao

GT Capital Holdings Inc., the holding company of taipan George Ty, has bought a 79.84-
percent stake in the dealership Toyota Cubao Inc. – an exclusive seller of Toyota cars, spare parts and accessories, and an exclusive provider of after-sales service.

The transaction was priced at P311. 5 million.

GT Capital mainly bought 62.420 million common shares in Toyota Cubao at P4.99 per share, according to a GT Capital disclosure to the Philippine Stock Exchange

"The acquisition of Toyota Cubao further strengthens GT Capital's strategic position in the auto sector, as it prepares for the motorization phase of the Philippine economy, during which steady
growth in auto sales is expected," said Carmelo Maria Luza Bautista, GT Capital president.

The acquisition – the second major Toyota dealership for GT Capital this month – was blessed with an independent valuation and a third party fairness opinion, GT Capital noted.

Earlier this month, GT Capital bought 60 percent of the Toyota Manila Bay Corp.'s outstanding capital stock, while Mitsui & Co. Ltd. of Japan maintained a 40-percent stake in the dealership.

Business strategy

Joey Crisol, GT Capital vice president and head of investor relations, told GMA News Online the acquisition of Toyota dealerships is a business strategy to integrate wholesale and retail sales into the operations.

"This is part of our efforts to support our automotive business, as we're already in the assembly and importation of Toyota vehicles under Toyota Motor Philippines Inc. (TMP)," he said.

Asked whether all Toyota dealerships will be consolidated under GT Capital, Crisol said only a select number of dealerships will be acquired.

"There are over 40 dealerships nationwide. We're just selecting which dealerships to buy," he added.

In January 2013, GT Capital acquired an additional 15-percent stake in TMP for P4.5 billion, bringing its total shareholdings in the Japanese carmaker to 51 percent. – VS, GMA News