Mitsubishi Corp. gets 6.5% of GCash
Mitsubishi Corp., Japan’s largest trading company, acquired 6.5 percent of GCash, one of the leading digital wallet applications in the Philippines.
In its Philippine Stock Exchange (PSEi) disclosure, Ayala Corp. announced that Mitsubishi acquired 50 percent or P18.4 billion worth of its stake at AC Ventures Holding Corp. (ACV).
Since "ACV owns 13 percent of Globe Fintech Innovations, Inc. (Mynt)", the parent company of GCash, Mitsubishi is taking 6.5 percent of the digital wallet app from Ayala Corp. However, the other half or 6.5 percent ownership of GCash will remain under the Ayala Corp.
"Mynt has two fintech companies: G-Xchange Inc., the mobile wallet operator of GCash, and Fuse Lending, a tech-based micro-lender. The transaction is subject to conditions precedent including regulatory approvals,' the disclosure stated.
"Mitsubishi, Japan’s largest trading company, can help Mynt grow overseas and within its own significant Japan-based ecosystem, and in areas like cloud-based payments and new credit algorithms," it added.
More than two months ago, the valuation of Gcash soared to $5 billion after securing investments from Ayala Corp. and Mitsubishi UFJ Financial Group (MUFG), Japan’s largest banking group and one of the largest financial institutions globally.
The disclosure said "Ayala and Mitsubishi entered into a partnership and cooperation agreement in 1974 that has since featured industrial estates, renewable energy projects, a water utility, and auto dealerships."
"The two companies are refreshing their partnership with the objective of supporting and capitalizing on the Philippines’ economic growth, which this year ranks among the fastest in the region," it stated.
Cezar Consing, President and CEO of Ayala Corp., expressed belief that “Mitsubishi can add meaningful value to Mynt, which will allow Mynt to deliver significant value to its over 94 million registered users".
"It’s all about serving better the many Filipinos that depend on GCash and Fuse, and for making a wider variety of financial and other products available to as many Filipinos as possible,” he said. Robina Asido/DMS
