Ayala Land takes majority control of Malaysian construction firm
MANILA, Philippines – Ayala Land Incorporated (ALI) is taking majority control of MCT Berhad by buying an additional 17.24% stake in the Malaysian development and construction company.
Ayala Land told the Philippine Stock Exchange (PSE) on Tuesday, January 2, that its unit Regent Wise Investments Limited (RWIL) has signed a share purchase agreement with Tan Sri Dato' Sri Goh Ming Choon, a major shareholder of MCT, to buy 230,115,574 ordinary shares in the Malaysian firm.
This will bring Ayala Land's shares in MCT to 50.19% from 32.95%. (READ: Ayala Land net income up 18% in 1st 9 months)
Ayala Land said RWIL will conduct a mandatory takeover offer aligned with Malaysian laws once the share purchase agreement becomes unconditional.
"This increase in ownership will strengthen ALI's commitment to enhance MCT's operations and expand its business further," the listed property giant said in its disclosure.
"This will also provide ALI with a greater opportunity to take advantage of the growth potential and long-term prospects of the real estate sector in Malaysia and will affirm ALI's role as a key player in the ASEAN (Association of Southeast Asian Nations) property sector," it added.
With Ayala Land's track record in developing large-scale, integrated, mixed-use, and sustainable estates across the Philippines, the property firm said it believes that it is in a "highly capable position to boost the performance and enhance the value of MCT."
Back in 2015, Ayala Land first invested in MCT, a move that enabled it to enter the Malaysian market.
It initially acquired a 9.16% interest in MCT through a private placement with $43 million (P1.9 billion).
Ayala Land's stake in MCT increased to 32.95% in the same year, after it entered into call option agreements with the two founders and majority shareholders of MCT.
Established in 1999 as a construction company, MCT Berhad is a property development company specializing in mixed-use projects that include retail, office, hotel, as well as mid- to affordable residential units.
MCT is listed under the main market of Bursa Malaysia. The construction firm has several ongoing projects in One City, Subang Jaya and Cyberjaya, as well as a land bank in Dengkil. – Rappler.com