June 28, 2018 / 3:53 AM / 20 days ago

Philippines' GT Capital to invest up to $202 million in Toyota Motor

MANILA (Reuters) - Philippine conglomerate GT Capital Holdings Inc (GTCAP.PS) said on Thursday it would buy shares of Japan’s Toyota Motor Corp (7203.T) worth up to 22.2 billion yen ($201.6 million), marking its first offshore investment.

FILE PHOTO: A Toyota Motor Corp. logo is seen on a car at the International Auto Show in Mexico City, Mexico November 23, 2017. REUTERS/Henry Romero/File Photo

Toyota and GT Capital are co-owners of Toyota Philippines, the country’s top automotive manufacturer and retailer, with 49 percent and 51 percent, respectively.

The share purchase will be debt-funded and executed on the Tokyo Stock Exchange, based on the current prevailing rates on the dates of execution, GT Capital said in a statement.

Toyota is attractive given the dividend payout and potential increase in its stock price, GT Capital President Carmelo Maria Luza Bautista told Reuters. “At current price levels, Toyota is a good investment.”

GT Capital will acquire less than 0.1 percent of Toyota, which is valued at $208.7 billion.

Philippine companies having dominant market positions are increasingly exploring overseas opportunities for fresh sources of revenue.

Toyota Philippines is among the top income contributors of GT Capital, which is valued at $3.2 billion.

GT Capital's shares rose 1.98 percent, bucking the broader stock market's .PSI 1.29 percent decline as of 0343 GMT.

Reporting by Neil Jerome Morales in Manila and Aaron Saldanha in Bengaluru; Editing by Martin Petty and Sunil Nair

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