Ayala Corp P13B overnight share deal largest ever in PHL

Ayala Corporation on Wednesday raised an additional P13.6 billion in paid up, or non-borrowed, capital for its real estate unit Ayala Land Inc. (ALI).

 

Ayala Corporation raised the capital by selling 680 million of its listed ALI shares through a private placement at P20 per share. 

 

ALI simultaneously issued 680 million new primary shares to its parent firm, Ayala Corporation, at the same price. The price per share was at a 4.988 percent discount to the closing price today.

 

A Bloomberg.com report called the transaction “the largest overnight placement by a real estate company in SouthEast Asia since 2005, as well as the largest ever overnight placement in the Philippines.” 

 

Following this transaction, Ayala Corp.’s ownership in the voting stock of ALI was reduced to 71.22 percent from 73.07 percent, while its ownership in ALI’s common stock likewise dropped to 50.43 percent from 53.06 percent.

 

“A portion of the proceeds is expected to partially fund our company’s potential strategic alliance with a group led by Mr. Ignacio R. Ortigas and resulting participation in OCLP Holdings, Inc.,” said ALI senior vice president and chief financial officer Jaime Ysmael in a disclosure to Philippine Stock Exchange. 

 

ALI last month forged an investment plan with the Ortigas group worth P15 billion.

 

“This alliance is expected to provide the company with access to prime properties in Metro Manila amounting to about 55 hectares,” said ALI.

 

Goldman Sachs (Singapore) Pte., J.P. Morgan and UBS Investment bank acted as Joint book runners and placement agencies in connection with the placement. BPI Capital Corporation acted as the sole domestic coordinator and book runner and CLSA Limited acted as co-manager. — DVM, GMA News