Ayala Land buys Mitsubishi’s stake in Philenergy

INQUIRER FILE PHOTO

MANILA, Philippines—Ayala Land Inc. has struck a deal to buy out the 40 percent stake held by Mitsubishi Corp. in Philippine Integrated Energy Solutions, Inc.

“This acquisition will effectively make PhilEnergy our wholly owned subsidiary,” ALI said in a press statement on Monday.

PhilEnergy was formed as a 60-40 percent venture between ALI and Mitsubishi.  Its first major move was a P1-billion project to make energy and water consumption more efficient in Ayala Center (Makati) and Alabang Town Center.

ALI invested in PhilEnergy in a bid to “further enhance the competitiveness of its properties and even that of other potential third-party facilities by lowering energy consumption and increasing their sustainability footprint.  On the other hand, Mitsubishi was seen playing a critical role by providing technical support through its extensive network of affiliated energy-saving companies, which have extensive track records in Japan and around the region.

In a related development, ALI said it had obtained approval to offer up to P15 billion in retail bonds with a tenor of up to 11 years.

ALI said in a separate disclosure that the proposed bonds would be registered with the Securities and Exchange Commission and listed on the Philippine Dealing & Exchange Corp.

“Net proceeds shall be utilized for general corporate purposes and together with internally generated funds is expected to fund the full capital expenditure for 2014,” the disclosure said.