September 01, 2014

Metrobank, PS Bank to sell Toyota Financial stake to GT Capital

In a disclosure to the Exchange today, Metrobank (MBT, Buy) and Philippine Savings Bank (PSB) disclosed that their respective boards approved the sale of their ownership stakes in Toyota Financial Services Philippines Corp. (TFSPC) to GT Capital Holdings (GTCAP). MBT will sell its 15% and PSB will also sell its 25% stake in TFPSC to GTCAP for an aggregate consideration of P2.1b. The banks said that the amount was arrived at after an independent valuation exercises and was subjected to third party fairness opinion. Upon completion, GTCAP will have a 40% direct stake in TFPSC.

Our take: Based on our quick computations, MBT stands to realize about P1.4b in one-time gains from the sale of its direct and indirect stakes in TFPSC. Aside from this, the transaction will free up MBT and PSB’s balance sheets for further expansion. Selling their respective stakes in TFPSC is in line with their capital planning initiatives under Basel 3 and would result to marginal improvements in the capital ratios of both banks. The banks did not make available the metrics used for valuing their TFPSC stakes. – WealthSec