GCash acquires additional 16% stake in AB Capital

According to InsiderPH [link], Mynt, the parent company of GCash, has “secured” a 16% stake in the stock broker AB Capital Securities as part of a definitive agreement signed in 2023 for Mynt to “acquire up to a 50% equity stake in AB Capital Securities.” The stake acquisition brings Mynt’s total ownership stake of AB Capital up to 23.5% when including Mynt’s initial 7.5% stake that it purchased in the past for P37.5 million. Mynt is an affiliate of Globe Telecom [GLO 2090.00, down 0.4%], and AB Capital counts some of the country’s wealthiest oligarchs as its owners, including the Gokongweis, the Razons, and the Pos. GCash’s recent inclusion of stock trading is through a partnership with AB Capital, which acts as GCash’s broker partner.

 

MB bottom-line: From a raw capitalist perspective, it makes sense that Mynt would want to consolidate control of its dependencies, especially ahead of any kind of arm’s length fundraising. So Mynt/GCash doesn’t have control of AB Capital yet, but it has made significant progress towards acquiring that kind of interest through this transaction. GCash is a behemoth with a monster valuation that is lumbering and lurching towards an IPO, and this (to me) just feels like the company getting its affairs in order to reduce the number and severity of the concerns with its ancillary revenue streams, like GStocks.        

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