Ayala sets P20 billion tender offer for Mitsubishi deal

MANILA, Philippines — The country’s oldest conglomerate is proceeding with a tender offer to acquire nearly P20 billion worth of shares to make way for larger investments from Japanese multinational Mitsubishi Corp.

In a disclosure to the Philippine Stock Exchange (PSE), Ayala Corp. said it plans to acquire 30.07 million common shares through a public, voluntary tender offer.

The shares, representing 4.85 percent of Ayala’s business, will be acquired at P650 apiece, a 23-percent   premium over the average price of P529.64   as of Tuesday.

Ayala will begin the offer on Nov. 4. As part of the process, the company will prepare a tender offer report for submission to the PSE and the Securities and Exchange Commission.

In September, Mitsubishi announced it is hiking its stake in Ayala through a P44.5-billion deal. In line with this, Mitsubishi’s ownership in Ayala will rise to 15 percent from just 4.7 percent.

Likewise, Mitsubishi’s voting stake will expand to 20 percent, giving it more influence over crucial decisions about Ayala’s future.

The investment will raise P20 billion in fresh capital for Ayala, part of which will be used to pay maturing loans and strengthen its finances.

Ayala will allocate a portion of the proceeds to financing future growth drivers, building on its reputation for developing homegrown brands like e-wallet giant GCash.

Before the tender offer, shareholders approved changes to Ayala’s articles of incorporation. The company expanded the board to nine seats, up from seven, to accommodate Mitsubishi’s investments.

Likewise, shareholders authorized Ayala to reclassify 1.44 million unissued common shares into 71.86 million voting preferred shares. They also voted to add convertibility to unissued common shares.

Mitsubishi’s larger play signals its intent to deepen collaboration with Ayala, especially as both are invested in several industries, including energy, infrastructure, mobility and property.

tender offer, shareholders approved changes to Ayala’s articles of incorporation. The company expanded the board to nine seats, up from seven, to accommodate Mitsubishi’s investments.

Likewise, shareholders authorized Ayala to reclassify 1.44 million unissued common shares into 71.86 million voting preferred shares. They also voted to add convertibility to unissued common shares.

Mitsubishi’s larger play signals its intent to deepen collaboration with Ayala, especially as both are invested in several industries, including energy, infrastructure, mobility and property.