BPI plans to divest its ownership stake in GoTyme
Bank of the Philippine Islands (BPI), under the Ayala group, has opted to sell off its recently acquired stake in the digital bank GoTyme, citing concerns over potential conflicts of interest arising from overlapping services.
In a disclosure made on Thursday, BPI announced its decision to offload its 15-percent interest in GoTyme Bank Corp. to GoTyme Financial Pte. Ltd. and Giga Investment Holdings Pte. Ltd. for a sum of P902.46 million. The asset sale is subject to approval by the Bangko Sentral ng Pilipinas (BSP).
BPI’s board greenlit the sale on Tuesday, with the majority of the stake, consisting of 774,099,587 common shares, being sold to GoTyme Financial, and 7,956,703 common shares purchased by Giga Investment at a rate of P1.20 each.
The primary motive behind the sale, as stated by BPI in its disclosure to the stock exchange, is to address potential conflicts of interest stemming from the significant overlap and similarity in the product offerings of GoTyme Bank and BPI. BPI obtained this stake as part of its merger with Robinsons Bank Corp., owned by the Gokongwei group, which took effect earlier this year.
GoTyme, a collaboration between the Gokongwei Group and Tyme Investments Pte. Ltd. based in Singapore, is among the six banks granted digital banking licenses by the BSP. The CEO of GoTyme, Nathaniel Clark, expressed confidence in the bank’s growth trajectory, emphasizing increased support from its major shareholders, JG Summit Holdings Inc. and the Tyme Group.
Lance Gokongwei, President and CEO of JG Summit, highlighted the commitment to enhancing customer experience in the financial services sector through the planned share buyback, underscoring the determination of the JG Summit Group and its partner Tyme Group to propel GoTyme’s impact in the Philippine market.
Since its launch in October 2022, GoTyme Bank has reportedly served approximately 3.0 million users. Regarding BPI’s decision, Japhet Tantiangco, a senior research analyst at Philstocks Financial Inc., noted that GoTyme Bank remains a competitor of BPI, implying that BPI’s move to liquidate its stake in GoTyme reflects its strategic focus on its core business operations.
Additionally, BPI’s board approved a change in stock transfer agency to Stock Transfer Service Inc. from BPI Stock Transfer Agency, effective May 1.
BPI’s financial performance showed a notable growth trajectory, with earnings rising by 30.5 percent to P51.7 billion in the previous year, and consolidated revenues increasing by 16.7 percent year-on-year to P138.3 billion, driven by higher net interest income. As of the end of December, BPI reported total assets of P2.9 trillion and total equity of P357.2 billion.
By the end of 2022, BPI had over 860 branches nationwide, approximately 1,700 automated teller machines, and nearly 340 cash-accepting machines, according to data from the Securities and Exchange Commission.
On the stock market, BPI’s shares rose by 70 centavos, or 0.57 percent, to P122.50 apiece on Thursday, while JG Summit’s share price advanced by 25 centavos, or 0.71 percent, to P35.55.
Business News: BPI plans to divest its ownership stake in GoTyme
