June 24, 2017 | MANILA, PHILIPPINES

GT Capital to raise Metrobank stake by 9.6%

GT CAPITAL Holdings, Inc. is increasing its stake in banking arm Metropolitan Bank and Trust Company to 36%, as it signed a deal to acquire shares from various Ty family-owned companies for around P24.67 billion.


In a disclosure to the stock exchange on Tuesday, GT Capital said it inked a memorandum of agreement to purchase 306 million secondary shares of Metrobank, representing a 9.622% stake. GT Capital previously held a 26.47% stake in Metrobank.

“There are several advantages to GT Capital’s increased ownership in Metrobank. First of all, it enables GT Capital to benefit from a more balanced income contribution from its investments. This will also be accretive to our earnings per share. Furthermore, the additional Metrobank shares put us at par with our peer conglomerates with respect to the percentage ownership of our banking subsidiaries and affiliates,” GT Capital President Carmelo Maria Luza Bautista was quoted as saying in a statement.

GT Capital’s acquisition of the secondary shares of Metrobank will still need regulatory approval.

At the same time, the Ty family consolidated its stake in GT Capital. Its privately held company Grand Titan Capital Holdings, Inc. signed a memorandum of agreement to subscribe to 9.5% or 18.29 million primary shares in GT Capital for P21.69 billion.

A majority shareholder of GT Capital, Grand Titan will now own 55.93% of the listed company. The transaction will increase GT Capital’s total issued and outstanding shares to 192,596,685 from 174,300,000.

The purchase price for the Metrobank and GT Capital shares will be based on their respective 30-day volume weighted average prices as of the date of execution of the agreement.

As of April 18, the 30-day VWAP of GT Capital shares stood at P1,179.82, while Metrobank shares stood at P80.76.

Shares in GT Capital slipped 1.5% or P15 to P1,230 apiece on Tuesday, while Metrobank shares dropped 1.75% or P1.45 to P81.50. -- Arra B. Francia with Dindo F. Paragas