MANILA, Philippines — Japanese multinational Mitsubishi Corp. is spending P18.4 billion to acquire a 6.5-percent stake in e-wallet giant GCash from conglomerate Ayala Corp.
In a disclosure to the Philippine Stock Exchange, Ayala said it has accepted the binding offer from Mitsubishi to acquire a 50 percent ownership in AC Ventures Holdings Corp.
ACV holds a 13-percent stake in Globe Fintech Innovations Inc. (Mynt), the parent of GCash, which to date has a customer base of around 94 million.
Mitsubishi will take over half of ACV’s share in Mynt.
For GCash, this is the second investment that it has received in less than a quarter. The e-wallet picked up fresh capital from Mitsubishi UFJ Financial Group, the largest bank in Japan, last August.
At the time, Mynt also welcomed additional infusion from ACV to raise its stake to 13 percent, of which Mitsubishi is now taking half.
With the new investments, GCash has grown its valuation to up to $5 billion, more than double its previous worth of $2 billion, gearing it up for the largest initial public offering in the Philippines if the e-wallet chooses to list in the country.
GCash is showing signs that it is financially viable in the long run, with Mynt turning in a profit of P6.7 billion in 2023.
Ayala president and CEO Cezar Consing said the entry of Mitsubishi in ACV would help GCash expand its presence abroad.
Even in Japan alone, GCash can work with Mitsubishi in penetrating the digital landscape there, for cloud-based payments and credit algorithms, among others.
On top of investing in ACV, Mitsubishi also signed a memorandum of understanding with Ayala to mark their 50 years as partners. The MOU commits to promote more projects between Ayala and Mitsubishi as the Philippines transitions to a digital economy.
In 1974, the two entities entered into a cooperation agreement that has led to tie-ups on industrial estates, renewable energy, vehicle dealerships and a water utility.
“These initiatives are aligned with Ayala Corp.’s strategic priority to support the growth of clear business winners within its portfolio,” Ayala said.