PCC clears ALI’s buyout of Aboitiz Group in Cebu JV

MANILA, Philippines — The Philippine Competition Commission (PCC) has cleared Ayala Land Inc. (ALI)’s buyout of the Aboitiz Group’s stake in their joint venture in Cebu for P1.81 billion.

In separate disclosures, ALI and Aboitiz Equity Ventures (AEV) said they received approval from the PCC to proceed with the transaction.

Following the PCC’s approval, the parties executed the definitive agreements to effect the transfer of shares.

The transaction involves ALI’s acquisition of the 50 percent equity interest of Aboitiz Land and AEV in Cebu District Property Enterprise Inc. (CDPEI), the developer of the 17.5-hectare mixed use development called Gatewalk Central in Mandaue City, Cebu.

Shares purchased under the deal include 1.81 million common shares owned by Aboitiz Land and 16.29 million Series A preferred shares of AEV at a price of P100 apiece.

ALI envisions Gatewalk Central to be one of its key Cebu estates that will contribute to its growing presence in Visayas.

For AEV, the transaction is aligned with the company’s strategy to optimize resource allocation and focus on specific segments of the real estate industry.

CDPEI was incorporated in 2014 as a joint venture company of ALI, Aboitiz Land and AEV to engage in real estate development.