Ayala Corporation (stock: AC) has agreed to sell half of its stake in AC Ventures Holding Corp. (ACV) to Japan’s Mitsubishi Corporation (MC) for at least ₱18.4 billion, strengthening their long-standing partnership. This deal represents a significant development in Ayala’s digital investment strategy and opens doors for growth in the fintech sector, both locally and internationally.

Key Points of the Transaction:

• AC Ventures’ role: ACV holds a 13% stake in Globe Fintech Innovations Inc., also known as Mynt, the parent company of GCash, the Philippines' largest mobile wallet.
• ₱18.4 billion deal: Mitsubishi will acquire a 50% stake in ACV, reducing Ayala’s stake to 50%. Regulatory approvals are still pending, but corporate authorizations have been secured.
• Growth opportunities: Mitsubishi's involvement is expected to drive growth in Mynt by leveraging its experience in cloud-based payments and advanced credit algorithms.
  
  

GCash, the leader in the Philippines’ fintech landscape, serves over 94 million registered users. Through this deal, Mitsubishi can help Mynt explore new opportunities both within the Philippines and internationally. Given the growing importance of digital wallets and micro-lending platforms like Fuse Lending, the potential for innovation and service expansion is significant.

According to Cezar Consing, President and CEO of Ayala Corporation, Mitsubishi’s investment will bring new value to Mynt’s existing users by improving service offerings and expanding the financial products available to Filipinos. "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," Consing said.

A Longstanding Partnership Refreshed

The partnership between Ayala and Mitsubishi dates back to 1974 and spans several industries including renewable energy, industrial estates, and auto dealerships. The latest agreement represents a refreshed collaboration between the two companies, with Mitsubishi now helping Ayala expand its influence in the digital economy.

The companies also signed a memorandum of understanding to further business development in the Philippines, marking the 50th anniversary of their partnership. As part of this broader agreement, both companies will explore growth areas such as retail, healthcare, mobility, and renewable energy, aiming to capitalize on the country's economic momentum.

GCash’s Growth and Future Valuation

GCash, valued at $5 billion, has become an essential part of the financial infrastructure in the Philippines. Analysts project that GCash may soon surpass its parent company, Globe Telecom (stock: GLO), in market valuation. Globe is currently valued at around $6 billion.

This transaction follows previous investments in Mynt, including an August 2024 infusion of ₱22.4 billion from Ayala to raise its stake in Mynt, along with a $393 million investment from Japan’s MUFG Bank, which now holds an 8% stake in Mynt. These capital boosts highlight GCash's growing market value and its potential for an initial public offering (IPO) in the near future.

With the Philippines ranking as one of the fastest-growing economies in Asia, this partnership is well-timed. Financial inclusion remains a priority, and digital services like GCash are playing a crucial role in bringing banking solutions to underserved populations. Mitsubishi’s investment is likely to further enhance GCash’s offerings and help scale its operations to meet the growing demand for fintech solutions.

In addition to its core mobile wallet services, GCash provides micro-lending through Fuse and offers users a wide array of financial products, making it indispensable for many Filipinos. Approximately 80% of Filipinos have tried GCash, according to Mitsubishi, highlighting its widespread adoption.