Mitsubishi, Ayala clinch deal for 50% stake in GCash parent
Popular e-wallet platform GCash is all set to attracting a new investor ahead of its much-awaited stock market debut after the Ayala group sealed a multibillion-peso share sale deal with Japan’s Mitsubishi Corp.
On Wednesday, Ayala Corp. and Mitsubishi finalized an P18.4-billion agreement for the latter to subscribe to 18 million common and redeemable preferred shares in AC Ventures Holding Corp.
The venture capital firm of the Zobel family holds a 13-percent stake in fintech unicorn Mynt, the owner of GCash operator G-Xchange Inc. and microlender Fuse Lending.
Ayala and Mitsubishi will each hold a 50-percent ownership in AC Ventures following the transaction.
This will effectively give Mitsubishi a 6.5-percent indirect ownership in GCash.
Ayala president and CEO Cezar Consing previously said Mitsubishi’s entry could “add meaningful value to Mynt, which will allow Mynt to deliver significant value to its over 94 million registered users.”
Mitsubishi’s investment is likewise seen as a way for Mynt to grow in the cloud payment space while expanding to overseas markets.
Analysts earlier noted that Ayala’s deal with Mitsubishi could open doors for GCash to get more international investors, especially with AC Ventures now having room to expand outside the Philippines.
GCash gained traction during the pandemic lockdowns as merchants and customers adopted contactless payment platforms.
Today, the 20-year-old company is available in at least 16 international markets, including the United States, Canada, United Kingdom, Australia, Italy, Saudi Arabia, Kuwait and Singapore.
Ayala had injected P22.4 billion in Mynt to increase its shareholding in the Globe Group’s fintech arm. MUFG Bank Ltd., Japan’s largest bank that is also under the Mitsubishi Group, likewise infused $393 million into Mynt, representing an 8-percent stake.
These fundraising activities value GCash at a whopping $5 billion.
While rumors have long been circulating about GCash’s long-stalled initial public offering, the company has yet to apply for listing with regulators, including the Philippine Stock Exchange and Securities and Exchange Commission.
