Ayala Corp to invest $20M in emerging market fund

Ayala Corp. is investing up to $20 million in New York-based Rohatyn Group’s Special Opportunity Fund Ltd. (SOF) as part of efforts to broaden its equity portfolio.

In a disclosure to the Philippine Stock Exchange, Ayala Corp. managing director Renato Marzan said the investment will be made by its unit Azalea International Venture Partners Ltd.

Marzan said the investment is part of the company’s strategy to work with partners to seek opportunities to expand its equity placements and generate returns from medium-term investments.

SOF focuses on acquisitions in emerging markets that include Latin America, Eastern Europe, Asia, and Africa.

Ayala has interests in property development and retail operation, telecommunications, banking, water utility service, and information technology, among others.

It reported a 12-percent growth in its net profit last year to P8.2 billion, driven by the continued strong performance of its subsidiaries. Property unit ALI reported a net income of P3.6 billion last year, up 21 percent while banking subsidiary Bank of the Philippine Islands posted a 21- percent increase in unaudited net income to P8.1 billion.

Telecoms unit Globe Telecom, on the other hand, suffered a nine percent drop in net income last year as revenues were crippled by higher marketing and network-related expense. A higher provision for income tax, which nearly tripled from the previous year following the expiration of its income tax holiday, also capped earnings growth.