Mitsubishi acquires 6.5% of Filipino e-wallet GCash

Filippino conglomerate Ayala and Mitsubishi have executed an investment agreement for the Japanese multinational’s acquisition of a 6.5% stake in e-wallet giant GCash, according to a stock exchange filing.

Mitsubishi will subscribe to 18.03 million common and redeemable preferred shares of AC Ventures Holding (ACV), which holds a 13% stake in Globe Fintech Innovations (Mynt), the parent of GCash, for at least P18.4 billion. Ayala and Mitsubishi will each own a 50-percent ownership stake in ACV after the transaction.

Mitsubishi’s investment will only be completed after satisfaction of conditions precedent, including the approval by the Securities and Exchange Commission of the amendment of the articles of incorporation of ACV and the approval of the Philippine Competition Commission.

The subscription proceeds will be used to redeem Ayala’s redeemable preferred shares in ACV and cover related costs.

GCash saw its valuation double to $5 billion last year after fresh investments from Ayala and Mitsubishi UFJ Financial Group.

Globe Telecom, which owns a 36 percent stake in Mynt, has said that it is still keen on holding an initial public offering for GCash in the Philippines but wants to offer a smaller part of the fintech's shares on the market than the 20 percent originally mandated by the Philippine Stock Exchange. The PSE meanwhile has since reduced its required float to 15 percent.

The Ayala-led telco giant said its share in Mynt's equity earnings reached a record P3.8 billion in 2024, which was 59 percent higher than the P2.4 billion booked in 2023.

Mitsubishi, Japan’s largest trading company, is expected to help Mynt grow overseas and within its own significant Japan-based ecosystem as well as in areas like cloud-based payments and new credit algorithms.

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