MANILA, Philippines – GT Capital Holdings Inc. of banking tycoon George S.K. Ty has brought down its foreign ownership level by nearly half following the issuance of 174.3 million voting preferred shares.
In a disclosure to the local bourse, GT Capital said foreign ownership in the company has decreased from 37.372 percent to 19.034 percent.
Ownership of Grand Titan Holdings Inc., the parent company of GT Capital, meanwhile rose to 76.06 percent from 54.31 percent after the issuance.
GT Capital was able to raise P17.43 million from Monday’s issuance of 174.3 million voting preferred shares at P0.10 apiece.
The shares were offered from April 1 to 8. The voting preferred shares are “non-cumulative, non-participating, non-convertible and redeemable.”
“For continuing compliance with foreign ownership limits under the 1987 Philippine Constitution, as well as related laws, rules and regulations,” the conglomerate said in explaining the reason of the issuance.
GT Capital last February raised about P10 billion after its largest shareholders unloaded five percent of their stake in the company.
It is one of the largest business groups in the country with investments in banking (Metropolitan Bank and Trust Co.), property (Federal Land), power generation (Global Business Power Corp.), automotive assembly and imports (Toyota Motor Philippines), life insurance (Philippine AXA Life Insurance), non-life insurance (Charter Ping An Corp.) and automotive distribution (Toyota Manila Bay Corp. and Toyota Cubao Inc.).
GT Capital’s net income rose six percent last year to P9.2 billion from P8.6 billion in 2013 after the company recorded a P2-billion non-recurring income.
It earmarked P50 billion for capital expenditures last year and is allocating about the same amount this year.