AYALA Corp. on Friday said that its unit AC Education, Inc. and listed company iPeople, inc. had executed their plan and articles of merger as approved by the companies’ respective boards of directors and stockholders.
Separately, iPeople said that along with its parent firm House of Investments, Inc., it had signed the definitive merger agreement with Ayala Corp. and AC Education. The transaction values the combined entity at around P15.5 billion.
The merger involves an exchange of shares between iPeople and AC Education, which translates to an exchange ratio of 6.75 shares of AC Education for every 1 share of iPeople. It is subject to the approval of the Philippine Competition Commission and the Securities Exchange Commission.
After the merger, iPeople will be the surviving entity with House of Investments and Ayala Corp. controlling 51.3% and 33.5%, respectively.
“Target effectivity date for the merger is within the first half of 2019,” iPeople said.
The merger will bring together the seven educational institutions of iPeople and AC Education, “which together will offer quality education to students across all income segments, with campuses in Metro Manila, Calabarzon, the Bicol Region, and Mindanao,” the company said.
The deal will include iPeople and its subsidiary, Malayan Education System, Inc., which operates Mapua University. Malayan’s subsidiaries are Malayan Colleges Laguna, Malayan Colleges Mindanao in Davao, and Malayan Science High School in Manila.
The merger will also include AC Education and its subsidiaries, the University of Nueva Caceres, one of the oldest and largest universities in Bicol; National Teachers College; and APEC Schools, the largest chain of private stand-alone high schools in the country.
On Friday, shares in Ayala Corp. rose 1.40% to close at P940 each, while iPeople shares climbed 6.81% to P11.92 each. — Victor V. Saulon