Ayala group looks to Burma for expansion

Conglomerate Ayala Corp. is studying investment opportunities in Burma (Myanmar)—considered to be Southeast Asia’s last frontier—particularly in the fields of telecommunications, real estate and banking, as part of its regional expansion thrust.

The group has likewise affirmed an aggressive domestic expansion, riding on the Philippines’ projected growth trajectory. The group has committed $1 billion in equity over a five-year period to invest in power and infrastructure, in line with its strategy to consistently provide a 15-percent return on equity to shareholders.

“We have made progress in scaling up investments in new businesses, particularly in the energy sector. From virtually no exposure to the industry two years ago, we are now participating in various power generation projects across conventional and renewable energy platforms,” Ayala chair and chief executive officer Jaime Zobel de Ayala told stockholders.

About 70 percent of the fresh equity the group will deploy will go to conventional sources while the rest will fund renewable energy projects in the first five years, said Ayala managing director Eric Francia.

On overseas businesses, Ayala said that apart, from the group’s two global businesses—Integrated Microelectronics Inc. and LiveIT Holdings—each of Ayala’s operating units would pursue other opportunities. He cited Ayala Land’s property investment in China, Manila Water’s projects in Vietnam, as well as pending water projects in Indonesia.

Burma is a new growth area that the group is keen on. In telecommunications, Ayala said Singapore Telecommunications Ltd., the group’s partner in Globe Telecom, is working on a bid for a new telecommunications setup in Burma.

Ayala added that the group is looking at real estate and banking opportunities in Burma.

Burma is “the last country in Asean to open up. It’s in the process of modernizing and opening itself up to foreign investments,” he said.