Ayala firms buy 49% of Zalora

The Ayala group has entered the e-commerce business via a deal to acquire a 49-percent stake in Zalora Philippines, the country’s largest online fashion and lifestyle retailing platform.

Ayala Corp. acquired 43.3 percent of BF Jade E-Service Philippines, the company that owns and operates Zalora Philippines.  Separately, Ayala Land Inc., BPI Capital Corp. (a unit of Bank of the Philippine Islands) and Kickstart Ventures Inc. (a unit of Globe Telecom) also acquired minority ownership stakes in BF Jade.

In a separate disclosure, Ayala Land said it would own 1.91 percent of Zalora Philippines.  All in all, Ayala Corp. managing director Paolo Borromeo said the group had gained control of 49 percent of the online platform.

This acquisition is part of Ayala’s strategy to invest in new disruptive businesses that provide innovative solutions to evolving markets, the conglomerate said. The group recognizes that e-commerce is a unique growth channel that complements existing businesses, drawing on synergies with the rest of the Ayala group.

“This investment demonstrates how we, at Ayala, look at innovation and growth opportunities. We see the potential of e-commerce in the country, and believe that the Ayala group can benefit and add tremendous value to Zalora. With resources in banking, real estate and telecommunications, the investment presents new opportunities for Ayala to generate synergies throughout the e-commerce value chain,” Ayala chair and chief executive officer Jaime Augusto Zobel de Ayala said in a statement.

With the evolving behavior and preferences of consumers today, Zalora Philippines’ proprietary retail and logistics platform is seen to be able to secure the needs of a rapidly changing market. —DORIS DUMLAO-ABADILLA

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