 |
George Ty on the issue of Forbes' Philippines Billionaire
list. He was ranked no. 10 with $1.1 billion in 2011.
|
Last Tuesday, we reported that Metropolitan Bank & Trust Company (PSE:MBT) entered into a memorandum of understanding with GT Capital Holdings (PSE:GTCAP) to sell its 30% stake in Toyota Philippines for P9 billion. Both companies are owned by George Ty and his family.
While it is difficult to assess if there was overpayment or undervaluation, from an outsider's perspective, the agreement is a win-win situation for both parties. Prior to the deal, GTCAP already holds 21% ownership in Toyota Philippines. Once the deal is finalized, they will have controlling interest at 51%. This will empower them to make wise and favorable decisions with Toyota. GTCAP's increased holdings in motor industry will strengthen its portfolio. For Toyota, the more focused management will give them a better chance to compete with other motor companies specially when Volkswagen's plans to expand its reach in Asia. As of 2011, Toyota is still the industry leader in terms of units sold:
 |
| Source: Rappler.com |
MBT on its part need to strengthen its balance sheet and capital position in preparation for Basel III implementation. Basel III is a global regulatory standard set for bank's capital adequacy and market liquidity. It was developed to help strengthen all bank's capital reserves to combat unfavorable conditions and financial crises. Considering that MBT needed more captal, the additional P9 billion it will receive once the deal is complete will be a big help to comply with the global banking requirement.
This is somewhat an internal transaction on Mr. Ty's standpoint. He gets to comply with Basel III guidelines for MBT and strengthens the portfolio of his holding firm, GTCAP, while still retaining controlling ownership for Toyota Philippines. This is a definite win-win situation for him and his companies, which is everything we would expect from one of the country's top tycoons.
Recommended:
Disclaimer: This article is solely the opinion of the author based on personal research. Any statement made is not a conclusion of absolute fact and is not intended to impose or persuade anyone's judgement.