Sale of Ayala shares to foreign investor gets board nod

The board of conglomerate Ayala Corp. has ratified the sale of P8.07 billion worth of new equity through a private placement by a foreign long-term institutional investor.

Ayala was authorized to issue 8.81 million common shares at P916 each to the new investor, the conglomerate disclosed to the Philippine Stock Exchange on Tuesday.

The price reflected a discount of 1.08 percent to the 30-day volume weighted average closing price of Ayala shares.

Apart from raising P8.07 billion in fresh funds, the transaction increased Ayala’s public float to 52.3 percent from 51.6 percent.

“We intend to use the proceeds to acquire properties or assets needed for the business of Ayala or for payment of debt contracted prior to the issuance of these shares,” the disclosure said.

The new shares to be issued are part of the “carved-out” shares as defined in the company’s articles of incorporation.

Article 7 of Ayala’s articles of incorporation allows the conglomerate to sell up to 100 million shares without preemptive rights or without having to offer them proportionately to existing shareholders.

“The company will, as soon as practicable, apply for the listing in the Philippine Stock Exchange of the shares, which constitute 1.4 percent of our increased common stock,” the disclosure said.

The shares issued to the new investor were priced lower than the 1.36-percent stake in Ayala unloaded by Japanese conglomerate Mitsubishi Corp. last March. Mitsubishi had sold shares in Ayala equivalent to 1.36 percent for P7.94 billion, equivalent to 8.5 million shares then priced at P934 each.

Ayala is one of the leading conglomerates in the country, with interests in property development, banking, telecommunications, water utility, electronics manufacturing, infrastructure, healthcare and education. —DORIS DUMLAO-ABADILLA