GT Capital on Monday (April 17) signed a memorandum of agreement, subject to regulatory approvals, to acquire 306 million secondary shares of Metrobank held by various Ty family-owned companies.
The acquisition will increase GT Capital’s stake in Metrobank by 9.622 per cent to 36.092 per cent from 26.47 per cent at present.
A separate memorandum of agreement was also signed for the subscription by Grand Titan Capital Holdings Inc (Grand Titan) to 9.5 per cent or over 18.2 million primary shares of GT Capital pegged at P21.69 billion.
As a result, Grand Titan, which is the majority shareholder of GT Capital, will own 55.93 per cent of the company. GT Capital’s total issued and outstanding shares will increase from 174,300,000 to 192,596,685.
GT Capital president Carmelo Maria Luza Bautista said that 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,” Bautista said. “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.”
The purchase price for the Metrobank shares and the subscription price for the GT Capital shares are both based on their respective 30-day volume weighted average prices (VWAP) as of the date of execution of the two memorandum of agreement.
GT Capital and Metrobank were trading at P1,230, and P81.80 per share, respectively, on Tuesday (April 18) at the time of filing this article.