Mitsubishi boosts stake in Ayala through P44.5 billion transaction

MANILA, Philippines — Japan’s Mitsubishi Corp. is hiking its stake in Ayala Corp. through a P44.5-billion transaction, reinforcing its position as one of the Philippine conglomerate’s largest long-term strategic shareholders.

Ayala said a definitive agreement was signed to significantly expand Mitsubishi’s investment in the country’s oldest conglomerate.

The approximately $700-million transaction is based on the agreed subscription and acquisition price of P650 per common share and will comprise a combination of primary and secondary shares, including a voluntary tender offer.

Mitsubishi’s economic ownership in Ayala is set to increase from 4.7 percent to 15 percent, and its voting stake to 20 percent, upon completion of the transaction.

Ayala said the investment marks a new chapter “in a long-standing relationship anchored on shared values, responsible business stewardship and a common commitment to supporting the Philippines’ sustainable development.”

With Mitsubishi’s increased investment, the two groups intend to deepen collaboration in sectors critical to the country’s future development, including infrastructure, energy transition, real estate, digital technologies, mobility, logistics and other emerging growth industries.

Ayala said it is expected to receive approximately P20 billion in proceeds, which will be used to further strengthen its balance sheet through debt reduction, continue its share purchase program covering the shares of the company and its listed subsidiaries, as well as support future growth initiatives.

Jaime Augusto Zobel de Ayala, chairman of Ayala, said the transaction represents much more than a capital investment as it reflects the strength of a relationship built over many years and a deep alignment in values, long-term thinking and responsible business stewardship.

“As we enter this new chapter with Mitsubishi, we look forward to deepening our collaboration and creating lasting value for our stakeholders while contributing meaningfully to the country’s continued progress,” Zobel said.

Ayala plans to conduct a voluntary tender offer for up to approximately 30 million common shares as part of the transaction, on behalf of Mitsubishi.

The company said the tender offer would provide public shareholders with an opportunity to participate in the transaction and realize value at the same P650 per share price agreed with Mitsubishi.