GT CAPITAL Holdings, Inc. is teaming up with Japan’s Premium Group Co. Ltd. to establish a used car inspection and warranty business.
In a disclosure to the exchange on Tuesday, GT Capital said the planned investment with the Japanese firm will be made through its subsidiary GT Capital Auto Dealership Holdings, Inc. (GTCAD).
The business will be established through GT Mobility Ventures, Inc., a joint venture of GTCAD and Mitsui & Co. Ltd. After the transaction, GT Capital will have an effective ownership stake of 47% in the company.
Premium Group is a Tokyo-based company that deals with automotive sales, repairs, bodywork, paintwork and credit financing. Outside Japan, it currently has presence in Thailand and Indonesia.
GTCAD is the automotive arm of GT Capital, whose principal business interest is in investing in any auto dealership or other corporations in the same business. GT Capital also owns Toyota Motor Philippines Corp.
In 2019, GTCAD invested in a used car auction business through GT Mobility Ventures. It teamed up with auction house operator Japan Bike Auction Co. Ltd. to form JBA Philippines, where GT Mobility Ventures owns a 60% controlling stake.
In the first quarter, GT Capital reported a 26% earnings decline to P2.5 billion due to the coronavirus disease 2019 (COVID-19) pandemic, which weighed on its banking, automotive and insurance segments. Its revenues fell 13% to P39 billion.
Shares in GT Capital at the stock exchange gave up P4.60 or 1% to P455 each on Tuesday. — Denise A. Valdez
