Ayala Corp to undertake massive corporate restructuring strategy

Ayala Corp. (AC), one of the country’s largest business conglomerates, will embark on a massive corporate restructuring strategy that will involve the spin-off of its non-core businesses under a single unit.

In a letter to the Philippine Stock Exchange (PSE), the company pointed out that this plan is not in any way reflective of Ayala Corp.’s financial standing… and should not be constructed as necessarily indicative of any divestment plans.

At the same time, AC said a special opportunity package (SOP) will be offered to its employees who may be affected as the restructuring process takes place and once the organizational implications become clearer.

Rufino Luis Manotok, AC managing director, earlier informed the PSE that the new division will be led by former Energy Secretary Delfin Lazaro, currently the executive committee chairman of Globe Telecom and president and CEO of iAyala.

Aside from strategic realignments, the main feature of this restructuring is the creation of a new division which will be proactive in finding new and creative ways of unlocking value from Ayala Corp.’s domestic non-listed companies and investments, including idle and non-strategic assets, Manotok said.

He pointed out the new corporate strategy of the holding company will be more responsive to a rapidly changing external environment, taking into account the shifting global and regional competitive landscape.

Even with the recent sale of food processing unit Pure Foods Corp. to San Miguel Corp. early this year, the Ayalas were still left with several prime assets that include the flagship property development arm Ayala Land, telecoms firm Globe Telecom and banking subsidiary Bank of the Philippine Islands.

The Ayala group also has investments in the electronics and information technology sector (iAyala Co. Inc., Ayala Systems Technology Inc., EDINet Philippines Inc.); utilities (Manila Water Co. Inc.) and automotive (Honda Cars Philippines, Isuzu Philippines).