MANILA, Philippines - Metropolitan Bank and Trust Co. will be selling its entire stake in Toyota Motor Philippines to holding company GT Capital Holdings.
"The Boards of Directors of Metrobank and GT Capital ... have approved in principle the sale of Metrobank's 30% ownership of Toyota Motor Philippines to GT Capital at a consideration of P9 billion," Metrobank said in a disclosure to the stock exchange.
The bank added it has signed a memorandum of understanding with the holding firm.
"For Metrobank, the transaction will serve to strengthen its balance sheet and capital position in preparation for the implementation of Basel III," the bank said.
Meanwhile, for the holding firm "The acquisition of more shares in [Toyota] is part of GT Capital's long term program of increasing its holdings in its core businesses."
GT Capital's stake in Toyota will increase to 51% from 21% once the sale is completed.
Metrobank is a subsidiary of GT Capital, which also has insurance, power generation, and real estate development businesses under its wing.