GT Capital acquires Toyota Cubao

MANILA, Philippines - GT Capital Holdings Inc. of banking tycoon George S.K. Ty has acquired another Toyota cars and parts distributor.

In a disclosure to the stock exchange, GT Capital said it bought 62.42 million common shares or 79.84 percent of Toyota Cubao Inc. for P311.5 million.

“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 GT Capital president Carmelo Maria Luza Bautista.

“The acquisition improves the synergies among the automotive, banking and insurance businesses of GT Capital,” he said.

Toyota Cubao, formed in 1989, is one of the pioneering and leading Toyota dealerships in the Philippines. It exclusively sells and distributes Toyota vehicles, spare parts, and accessories, while also providing a full range of after-sales service.

Selling shareholders were Solid Share Holdings Phils. Inc., Luxor Holdings Inc. and Titan Resources Corp., all owned by the Ty family.

The acquisition went through an independent valuation exercise, GT Capital said, adding that it secured a third party fairness opinion in line with good corporate governance practices.

In December, the holding firm bought 101.875 million common shares or 40.7 percent of Toyota Manila Bay Corp. (TMBC) for P502.25 million.

TMBC exclusively sells and distributes Toyota vehicles, spare parts and accessories. It also offers after-sales service such as periodic maintenance and both minor and major vehicle repairs.

GT Capital plans to increase its direct ownership in TMBC to 60 percent this year. As of end-2012, TMBC sold the most number of Toyota vehicles in the Philippines, accounting for 10 percent of all units sold in the country.

In January to September last year consolidated net income of GT Capital surged 44 percent to P7.7 billion from P5.3 billion a year ago while consolidated revenues spiked 362 percent to P77.2 billion from P16.7 billion due to better income contribution from operating units.

GT Capital is into banking (Metrobank), property (Federal Land), automotive (Toyota Motor), insurance (Philippine AXA Life Insurance, a joint venture with global insurance giant AXA Group) and power generation (Global Business Power Corp.).

GT Capital has been consolidating some operating units. For instance, it earlier acquired a majority stake in non-life insurance firm Charter Ping An for P1.4 billion.