Ayala Corp. sells P3.3B worth of treasury shares at 3% discount

Conglomerate Ayala Corporation sold more than 5 million treasury stocks Thursday, raising P3.3 billion to partly fund its $1 billion investments in the power and infrastructure sectors.

 

In an e-mailed statement, Ayala said it completed the sale of 5,183,740 common shares held in its treasury at P647 per share, a 3 percent discount from its closing price of P667 apiece on Wednesday.

 

The shares are expected to be crossed in a block sale through the Philippine Stock Exchange on May 30, 2013.

 

The expected settlement date is June 4, 2013. CLSA Limited was the sole placing agent in the transaction.

 

“This new funding will further strengthen our balance sheet to build up our portfolio in these two sectors. Overall, we are excited about the opportunities and the strategic value that investments in these two sectors can bring to Ayala,” president and chief operating officer Fernando Zobel de Ayala noted in the statement.

 

Ayala is looking to invest up to $1 billion over the next five years in power and infrastructure projects. The company is investing in the LRT Line 1 extension and operations and management project with its partner Metro Pacific Investments Corporation, and the Mactan Cebu International Airport passenger terminal project with Aboitiz Equity Ventures and ADC&HAS Airports Inc.

 

The conglomerate is also keen on bidding for certain projects in the toll road, rail, and airport spaces. 

 

In power generation, Ayala committed over $300 million in equity  investments on approximately 900 megawatts of gross generating capacity from conventional and renewable technologies and looks at increasing it to $500 to $600 million in the next 12 to 18 months.

 

It also said it "continues to actively explore greenfield and acquisition opportunities given the significant power backlog in various regions." — Danessa Rivera/VS, GMA News