Mitsubishi pours in P18.4B in GCash operator Mynt

Japanese mega conglomerate Mitsubishi Corporation is investing about $320 million in ACV Ventures Holdings Corporation, a wholly owned unit of the Philippines’ oldest enterprise, Ayala Corporation.

In a disclosure to the Philippine Stock Exchange, Ayala said it has reached an agreement with Mitsubishi to sell a 50% stake in ACV for P18.4 billion (around $320 million).

With the investment in ACV, Mitsubishi will effectively pour in capital in Globe Fintech Innovations Inc. (Mynt) —in which ACV holds an about 13% stake.

Mynt is the parent company of popular finance super app and mobile wallet GCash (operated by G-Xchange Inc.) and fintech micro-lender Fuse Lending. 

Ayala said the transaction with Mitsubishi “is subject to conditions precedent including regulatory approvals.”

In a statement, Mitsubishi said it is also going to sign a memorandum of understanding (MoU) with Ayala “on a comprehensive collaboration in the Philippines.”

“The MoU covers additional business developments aimed at stimulating the country's economic growth,” the Japanese conglomerate said.

Mitsubishi, in investing in ACV, cited GCash’s growing popularity with approximately 80% of the Philippines’ citizens “have ever tried using” the mobile wallet.

Ayala, for its part, said Mitsubishi can help Mynt grow overseas and within its own significant Japan-based ecosystem, and in areas like cloud-based payments and new credit algorithms.

“We believe 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,” said Cezar Consing, president and CEO of Ayala Corporation.

Ayala and Mitsubishi first partnered in 1974 and has since built on ventures in various sectors such as industrial estates, renewable energy, water utility, and auto dealerships.

—VAL, GMA Integrated News