Malaya, 19 July 2012
Ayala Corp. yesterday said it sold 15 million treasury shares worth P6.45 billion to Deutsche Bank.
Ayala is filling up its coffers in preparation for its planned foray to infrastructure and power business to be opened by the government under the public private partnership program.
Ayala is budgeting $1 billion (P42 billion) within the next five years for toll road, rail, and airport projects under the PPP.
Deutsche Bank got the shares at a discount, P430 per share, compared with Tuesday’s close of P458 per share.
The company did not explain why it chose to sell to a single buyer instead of putting up the shares at the auction block at the Philippine Stock Exchange.
Treasury shares are part of a company’s capital stock which have not been bought or sold.
Ayala won the first PPP project rolled out, Daang Hari–SLEX connector road, last December.
“Projects of interest to the group include the NAIA Expressway, the Cavite-Laguna (CALA) Expressway, and the LRT Line 1 extension, operation and maintenance.
Ayala recently formed a strategic partnership with Metro Pacific Investment Corp. to jointly pursue light rail projects in the Metro Manila area.
Ayala said it is also keen to participate in the development of airports such as the Mactan Cebu International Airport.
In the power generation sector, Ayala has established a platform of conventional and renewable technologies and has committed around $100 million of equity on approximately 180 megawatts of gross generating capacity. It began construction of a 135-MW CFB thermal plant in Calaca, Batangas in partnership with the Phinma group’s Trans Asia Oil and Development Corp., with plans for a possible second phase on the table.
Ayala, meanwhile, is also gradually building its portfolio of renewable energy sources in solar, wind and hydro technologies. Investments in these technologies will be shaped in part by the implementation of the feed-in-tariffs which the government is expected to announce in the coming months, the company said.
Beyond these initiatives, the company continues to actively pursue a robust pipeline of greenfield projects and acquisition opportunities in the power sector.
“The company is in a phase of active investment and is eyeing to build new businesses in power and transport infrastructure. In the same manner Ayala invested in the telecom and water sector in the past, we believe the power and infrastructure sectors are critical for the country’s growth and development. We hope to be able to contribute in some measure to the development of these sectors and at the same time create future sources of earnings and value for the group,” said Fernando Zobel de Ayala, Ayala president.
While the company remains focused on the Philippines, it also continues to explore opportunities in other markets in the region. It recently acquired a 10 percent stake in Ho Chi Minh Infrastructure Investment Co. (CII), a leading player in the infrastructure sector in Vietnam. CII holds toll road concession agreements such as the 15.7-kilometer expansion of the existing Ha Noi Highway, which connects the northeastern part of Ho Chi Minh City to Bien Hoa, an industrial center in the southern part of Vietnam.
Ayala believes this investment provides strategic access to other infrastructure projects which may present opportunities for the Ayala group to establish a presence across several sectors in Vietnam.
Ayala Corporation’s share price has risen 46 percent year-to-date with market capitalization of over P260 billion.
