For PHP 22.9 billion ($394.54 million), the conglomerate Ayala Corporation, based in the Philippines, has purchased an additional 8% stake in Globe Fintech Innovations, Inc. (Mynt), the parent company of the digital cashless ecosystem and finance super app in the country, GCash.
Ayala announced in a statement on Thursday that it will be increasing its ownership stake in Mynt through its wholly-owned subsidiary, AC Ventures Holding Corp. (ACV).
As per the statement, ACV has executed a final contract to purchase common shares from current shareholders, which corresponds to an extra 8 percent ownership portion in Mynt.
With this deal, Mynt is valued at roughly PHP 286.4 billion ($4.93 billion), and Ayala now owns roughly 13% of the company.
It is mentioned that Ayala’s plan to reallocate capital to indubitable winners in the business world includes an increased investment in Mynt.
According to the statement, Ayala can now take advantage of GCash’s substantial long-term growth potential thanks to its increased stake in Mynt.
It is also mentioned that there are a lot of unrealized market opportunities for the GCash platform, which is currently the industry leader in the Philippines.
Mynt’s 2023 net income was PHP 6.7 billion ($115.39 million), triple that of the year before.
“We like the long-term growth prospects of Mynt. It is a clear leader in a fast-growing space and a key contributor to the Philippines’ economic growth,
“Mynt enables underserved Filipino consumer and business segments to thrive,” said Cezar Consing, President and Chief Executive Officer of Ayala Corporation.
In the Philippines, Ayala is among the biggest conglomerates.
The company is well-known in the banking, telecommunications, renewable energy, and real estate industries.
In addition to investments in industrial technologies, education, and technology ventures, it is becoming more and more prevalent in the fields of healthcare, logistics, mobility, and fintech.
In the Philippines, Mynt is a $5 billion unicorn.
The company is a pioneer in mobile finance services, using technology, financial services, and mobile money to accelerate financial inclusion.
Two fintech companies are run by Mynt: Fuse Lending, a tech-based lending company that provides microloans and business loans to Filipinos, and GXI, the mobile wallet operator of GCash, the finance super app in the Philippines.
