Ayala Land to absorb, merge with four subsidiaries

Property giant Ayala Land Inc. (ALI) is merging with four companies under its umbrella, in a move to consolidate its portfolio under a single entity.

In a disclosure to the Philippine Stock Exchange on Wednesday, Ayala Land said its board of directors approved the company’s merger with its publicly-listed subsidiary, Cebu Holdings Inc. (CHI), as well as its other subsidiaries, namely Asian I-Office Properties Inc. (AiO), Arca South Commercial Ventures Corp. (ASCVC) and Central Block Developers Inc. (CBDI).

Ayala Land will be the surviving entity after the merger.

“The merger is an internal restructuring as well as a consolidation of ALI’s Cebu portfolio under one listed entity,” it said.

“The merger is expected to result in operational synergies, efficient funds management and simplified reporting to government agencies,” it added.

The merger will take effect immediately upon approval by the Securities and Exchange Commission (SEC).

CHI is a 71.13% owned subsidiary of Ayala Land. It is a publicly listed company with headquarters in Cebu City and is engaged in real estate development including the sale of commercial lots, residential and office units and lease of commercial spaces. 

AiO, meanwhile, is a wholly-owned subsidiary of CHI and is engaged in real estate development, specifically the development and operations of office towers within the Cebu IT Park Estate. 

ASCVC is a wholly-owned subsidiary of Ayala Land engaged in real estate development, specifically the development of a mixed-use block within Arca South Estate. 

CBDI is 55% owned by CHI and 45% owned by Ayala Land and is engaged in real estate development, specifically the development of a mixed-use block within the Cebu IT Park Estate. —Ted Cordero/KG, GMA News