AYALA Land, Inc. (ALI) plans to use new assets from its property-for-share swap with parent Ayala Corp. (AC) and Mermac, Inc. to expand its office portfolio and to develop more residential projects.
In a disclosure to the exchange on Wednesday, ALI said it plans to use two of the five properties for residential projects.
ALI is looking to use AC’s Honda Pasig property spanning 6,019 square meters (sq.m.) for a residential project under the company’s Avida brand.
Meanwhile, the 117,389-sq.m. Calauan property will be used to expand the company’s socialized housing presence in Southern Luzon through its BellaVita brand.
AC and Mermac’s office units and parking slots at Tower One in Makati City, which total 5,162 sq.m., will be used as is. The company said this would “increase ALI’s prime office portfolio and market share in Makati CBD (central business district).”
ALI is also getting AC’s 50% stake in Ayala Hotels, Inc., which owns the Manila Peninsula property and was ALI’s partner in Ayala Land Premier’s Park Central Tower’s Project.
“The Manila Peninsula property is envisioned to become a prime development opportunity in Makati CBD,” ALI said.
Under the deal, ALI will also acquire AC’s 100% stake in Darong Agricultural Corp., which has land assets in Davao del Sur and three more land plots within the same area. ALI will “retain [its] current use as a cattle farm while expanding ALI’s strategic land bank in Davao.”
AC and its top stockholder, Mermac, will subscribe to 311,580,000 ALI primary common shares for P55.60 apiece. Once the transaction gets regulatory approval, AC will increase its stake in ALI to 47.2% from the current 46.07%.
“FTI (FTI Consulting Philippines, Inc.) concluded that the transaction is fair from a financial point of view,” ALI said.
AC will be subscribing to 309,597,711 ALI primary common shares in exchange for the assets that are collectively worth P17.28 billion, while Mermac will subscribe to 1,982,289 for its assets worth P110.61 million.
On Wednesday, shares of ALI at the stock exchange went up 3.06% or P1.10 to close at P37 per share, while AC shares went up 0.92% or P8 to finish at P878 apiece. — Keren Concepcion G. Valmonte
