Ayala and Mitsubishi finalize PHP 18.4-billion deal for GCash stake

This will give the Japanese company 6.5 percent of the fintech company.

File photo: GCash app

50-50 ownership

Ayala Corporation (AC) has signed an investment agreement with Mitsubishi Corporation (MC), allowing the Japanese firm to subscribe to over 18 million common and redeemable preferred shares of AC Ventures Holding Corp. (ACV) for PHP 18.4 billion.

ACV shall use the subscription proceeds to redeem AC's redeemable preferred shares in ACV and cover related costs, a company disclosure read.

After the transactions, AC and MC shall each have a 50 percent ownership stake in ACV.

ACV has a 13 percent ownership interest in Mynt, the parent company of G-Xchange Inc., the operator of GCash.

Following this development, MC will gain a 6.5 percent stake in the fintech company.

MC's investment will only be completed after the satisfaction of conditions precedent, including the approval by the Securities and Exchange Commission of the amendment of the articles of incorporation of ACV and the approval or deemed approval of the Philippine Competition Commission.

What do you think, guys?

Source: Ayala, Via: ABS-CBN News