Ayala eyes $1 billion from sale of non-core assets

MANILA, Philippines — Conglomerate Ayala Corp. is on track to raise $1 billion from the sale of some of its non-core businesses.

This year alone, it has completed the sale of Integrated Micro-electronics Inc.’s 80 percent shareholdings in STI Enterprises to London-based private investment company Rcapital.

The transaction, which happened in July, amounted to £7.5 million and resulted in Ayala recognizing a one-time loss of P2.5 billion in the second quarter, the company said in a recent stock exchange filing.

Another divestment is AC Industrials’ sale of its 92.45 percent stake in MT Technologies GmbH to Callista Asset Management 18 GmbH in August.

The stake was held through AC Industrials’ Singaporean subsidiary, AC Industrials (Singapore) Pte. Ltd.). The transaction resulted in Ayala recognizing a P2.2 billion provision for impairment in the second quarter.

Yet another transaction is Ayala’s sale of more shares in Manila Water Co. Inc. worth P5.7 billion, further cutting the conglomerate’s minority stake and raising the possibility of a full exit from the now Razon-led water utility.

Ayala sold common and preferred shares equivalent to a 10.5 percent stake in Manila Water, leaving it with a 23.5 percent voting interest and 22.5 percent economic interest.

The conglomerate earlier announced its plan to raise $1 billion from the sale of its non-core assets, starting with the sale of the four-kilometer Muntinlupa Cavite Expressway (MCX) to tycoon Manuel Villar last year.

Villar-led Prime Asset Ventures Inc. (PAVI) acquired MCX for P3.8 billion.

The Department of Public Works and Highways gave its consent for the transfer of ownership to the Villar Group on July 19, 2023.

Ayala developed MCX over a decade ago to connect Metro Manila to Imus, Dasmarinas and Bacoor in Cavite, which were experiencing rapid growth. MCX succeeded in relieving traffic congestion and reducing the travel time between Metro Manila and Cavite

Ayala Corp. president and CEO Cezar Consing said the company has been recycling capital to benefit from opportunities in its core and emerging businesses.

The conglomerate, meanwhile, continues to scale up these emerging businesses, namely health and logistics.

AC Health’s Healthway Cancer Care Hospital is scheduled to be inaugurated before year-end.

The facility will be the country’s first dedicated cancer hospital, offering cancer procedures for detection, treatment, and rehabilitation.

It is a 100-bed facility featuring state-of-the-art technology and will be manned by many of the country’s top oncologists.

Meanwhile, AC Logistics continues to integrate its assets to eliminate redundancies, improve operational efficiency, and generate cost savings.