Ayala, Mitsubishi finalize P18.4-billion investment deal for GCash

Zobel de Ayala clan's diversified conglomerate, Ayala Corporation, has finalized its $320-million deal with Mitsubishi Corporation for the latter's acquisition of a 50% stake in its wholly owned unit, cementing the Japanese multinational's investment in mobile wallet GCash.

In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, Ayala Corporation announced it has signed the definitive agreement for Mitsubishi's "subscription to 18,033,946 common and redeemable preferred shares of AC Ventures for a subscription price of at least P18.4 billion."

After the transaction, Ayala Corporation and Mitsubishi shall each own a 50% ownership stake in AC Ventures.

AC Ventures Holdings Corporation, a wholly owned subsidiary of Ayala Corporation, holds an about 13% stake in Globe Fintech Innovations Inc. (Mynt).

Mynt is the parent company of popular finance super app and mobile wallet GCash (operated by G-Xchange Inc.) and fintech micro-lender Fuse Lending.

In investing in AC Ventures, Mitsubishi cited in October last year GCash's growing popularity with approximately 80% of the Philippines' citizens "have ever tried using" the mobile wallet.

Ayala Corporation said Mitsubishi's investment will only be completed after satisfaction of conditions precedent—including the approval by the Securities and Exchange Commission (SEC) of the amendment of the articles of incorporation of AC Ventures and the approval or deemed approval of the Philippine Competition Commission. — VDV, GMA Integrated News