PSBank buys Toyota Financial shares

The Philippine Savings Bank (PSBank) will acquire one million shares in Toyota Financial Services Philippines Corp. (TFS) from Orix Metro Leasing and Financial Services.

In a statement, PSBank said that the shares of stock it plans to buy represent 20 percent of the outstanding stock of TFS, a financing company licensed to engage in all forms of financing and primarily facilitates the sale of Toyota vehicles, products and services in the Philippines.

PSBank presently owns five percent of TFS while Orix Metro owns 20 percent. Metropolitan Bank and Trust Co. (Metrobank) owns another 15 percent.

The Metrobank group owns a cumulative 40 percent in TFS while the remaining 60 percent is owned by Toyota Financial Services of Japan.

"Once required regulatory approvals are obtained, the shares are expected to be sold based on the book value of TFS shares per month-end interim financial statements preceding the date of the issue," Perfecto Ramon Z. Dimayuga Jr., PSBank first vice president and chief finance officer, said in the statement.

TFS shares have a par value of P100 per share. As of end July 2006, the shares book value rose to P118.

The automative market in the Philippines is dominated by Toyota Motor Philippine Inc. with approximately 40-percent market share.

"PSBank’s pending strategic investment in TFS will be beneficial for the bank as Toyota motor vehicle sales are expected to remain on an uptrend in the years ahead," Dimayuga added.

PSBank is a member of the Metrobank group, and the country’s second largest thrift bank in terms of resources.