January 21, 2022 | 12:59
MANILA, Philippines – Ayala Corp. (AC) and its largest shareholder will infuse more properties to Ayala Land Inc. (ALI) in exchange for more shares, believing that its subsidiary will “optimize” the value of these real estate assets.
AC and Mermac Inc. – a healthcare facility provider owned by the Zobel family and AC’s largest shareholder – will transfer five real estate assets located in “key locations” to ALI under a share swap agreement. ownership for shares that is expected to close this year, according to regulatory filings Friday.
As part of the transaction, AC will exchange real estate assets valued at 17.28 billion pesos for 309.6 million primary ordinary shares of ALI. AC’s stake in the real estate subsidiary will drop from 46.07% to 47.2% once the exchange is completed.
The assets that AC will transfer to ALI are its 50% stake in Ayala Hotels Inc.; its 100% stake in Darong Agricultural and Development Corp. ; its office units on the 32nd and 35th floors of Tower One and Exchange Plaza with adjoining parking spaces; its lot with improvements in Brgy. Bagumbayan, Quezon City along the C5 road; and his lands at Calauan, Laguna.
Meanwhile, Mermac will hold an additional 1.98 million primary ordinary shares in ALI which, in turn, will receive real estate assets worth 110.6 million pesos.
The shares that ALI will issue to AC and Mermac will come from the treasury shares under the one billion ordinary share carve-out approved by ALI shareholders in 2014.
“We see ALI as the natural owner of these properties and is best positioned to maximize their value,” said Fernando Zobel de Ayala, AC’s President and CEO.
“Furthermore, this agreement is in line with Ayala’s initiative to increase its stake in ALI, similar to the bulk purchases of ALI shares we have made over the past year,” added Zobel.
On Friday, shares of AC ended the week up 2.25% while ALI gained 1.61%.