GT Capital seeks new businesses

As it preps up for next decade of growth

MANILA, Philippines — The Ty Group is embarking on a new era of growth over the next decade for its listed holding company GT Capital Holdings Inc., mapping out plans to further expand its diversified portfolio by entering into new business spaces.

GT Capital senior vice president and head of investor relations, strategic planning and corporate communication Jose Crisol said diversification is the intention for the group’s second decade as a listed company.

“What we set forth in the initial public offering (IPO) has already been accomplished. That box has been ticked so it’s now time to look into other initiatives and investments that will further strengthen GT Capital as a group,” he said.

GT Capital, which went public in 2012, currently has interests in market-leading businesses in banking; automotive assembly, importation, distribution and financing; property development; life and general insurance; and infrastructure and utilities.

“The reason why we are very much keen on looking into new sectors is that we have already accomplished what we set forth during the IPO and that was to consolidate the non-banking businesses of Metrobank into GT Capital. So, the objective really was to function as the official holding company. And we have attained that in the past 10 years that we are a listed company,” Crisol said.

“So from then on it was really buying more of the different verticals and operating companies. Now that we have reached a steady state of sorts, we  want to expand or aspire to expand aside from the five key lines of businesses that you see,” he said.

Crisol said the group is currently finalizing a system in which there will be a dedicated team that will look for opportunities that can complement its existing lines of business.

“Because in the past, it was done more on an ad hoc basis, meaning we would pull out officers and executives from various departments within GT Capital and form a team that will look into prospective investments,” he said.

“So it is now a more structured approach and once finalized, we will be more than willing to share the details of this new structure,” Crisol said.

Over the next decade, GT Capital has set its sights primarily on healthcare, renewable energy, education and data centers as potential new businesses.

“Definitely, the company is not resting on its laurels in terms of further diversifying its portfolio. So currently there are five major verticals comprising the investment portfolio for GT Capital. So definitely we have identified certain segments or other sectors that we would like to be involved in,” GT Capital executive vice president and chief financial officer Francisco Suarez Jr. said.

Suarez said GT Capital wants to be involved in healthcare because of various factors, among which is to address the increasing demand for healthcare services and the lack of government investments in the sector.

“So definitely we would like to penetrate the healthcare sector or it could be diagnostic centers, clinics,” he said.

The group, meanwhile, wants its potential investment in renewable energy to help in boosting the country’s power requirements.

“It’s still being looked into because we know the power situation and the need for more of it. So purely renewables are one of the items that is on our list,” Crisol said.

“In fact, in the past, we already looked or talked to a counterparty. The search continues into that space,” he said.

On data centers, Crisol said GT Capital can provide the structure needed and is also considering being involved in the actual operations.

“Because we have the land. Riverpark project in Cavite that’s close to 600 hectares. Now whether we will just be landlords and there will be tenants in that data center space we’re figuring it out. We’re open to opportunities, even looking to have joint venture in the actual operation of data centers. To reiterate, we have enough space and then if we have a strategic partner, a counterparty, why not?” he said.

Suarez, however, said GT Capital’s expansion in the coming years would not just be in new sectors.

He said the group is also ramping up the value chain of its existing businesses.

“The expansion is not just in completely new sectors but adjacent or existing sectors as well,” Suarez said.