ALI takes controlling stake in Malaysia property firm

MANILA, Philippines — Ayala Land Inc. (ALI), the integrated property developer of the Ayala Group, has acquired a higher stake in a Malaysian property firm, as part of efforts to strengthen its presence in Southeast Asia.

In a disclosure to the Philippine Stock Exchange (PSE), ALI said its wholly-owned subsidiary Regent Wise Investments Ltd. (RWIL), has completed a mandatory take over offer to MCT Bhd (MCT) shareholders.

The transaction raises ALI’s shareholdings in MCT to 72.31 percent from 50.19 percent.

Last month, RWIL signed a share purchase agreement to acquire an additional 17.24 percent share in MCT.

This came three years after ALI made its initial investment in MCT in 2015 with a 9.16 percent stake.

MCT is a property developer specializing in mixed-use projects that include retail, office, hotel, and mid- to affordable residential.

The company has several ongoing projects in OneCitySubang Jaya and Cyberjaya, as well as a land bank in Dengkil, 1.5km away south of Cyberjaya, all located in the Klang Valley in Malaysia.

Aside from the Malaysian market, ALI is also looking at other markets in the fast booming Southeast Asian region.

Potential sites for expansion include Vietnam and Myanmar and the preferred mode for expansion is to buy into companies, officials said.

As it continues with its expansion, ALI is raising up to P20 billion through retail bonds and bilateral term loans.

Proceeds will be used to finance general corporate requirements.

The retail bonds will be issued under the company’s P50 billion debt program approved by the Securities and Exchange Commission in 2016.

ALI will also raise up to P5 billion through the issuance of qualified buyer notes with a tenor of up to five years to refinance its short-term loans.

The company, meanwhile, also announced yesterday the declaration of annual cash dividends of 4.75 percent per annum or P0.0047 per share to all shareholders of record as of June 15, 2018. The payment date will be on June 29.