Yuchengcos, Ayalas plan merger of education businesses

MANILA, Philippines – The Yuchengco and the Ayala groups on Monday, January 8, announced a planned merger of their education businesses, a major deal that could be finalized within the 1st quarter of 2018.

Yuchengco-owned iPeople Incorporated and Ayala Corporation’s AC Education Incorporated (AEI) have executed a non-binding term sheet for their potential merger, both parties disclosed to the Philippine Stock Exchange (PSE).

The non-binding term sheet states that the two firms agreed to an exclusivity period to complete due diligence and to finalize terms of the proposed merger within the 1st 3 months of the year.

The companies said in their disclosure that iPeople will be the surviving entity. (READ: Ayala’s APEC Schools offers 3,500 senior HS seats for free)

The potential merger would bring together the educational institutions of House of Investments and Ayala Corporation with a combined population of over 40,000 students.

It would include iPeople and its significant subsidiary, Malayan Education System Incorporated, operating under Mapua University, Malayan Colleges Laguna, and Malayan Colleges Mindanao.

Mapua is a leading private engineering and technical university in the country, a world-ranked QS 3-star university, and the school with the most CHED Centers of Excellence in Engineering.

Meanwhile, Ayala’s AEI handles the University of Nueva Caceres, one of the oldest and largest universities in Bicol; and APEC Schools, the largest standalone chain of private high schools in the Philippines.

“Mapua’s reputation as a leading private engineering and technical university in the country, together with AEI’s ability to provide quality education leading to enhanced employability, at an affordable price, would enable the Yuchengco Group of Companies and Ayala Corporation to jointly contribute to the improvement of the quality of education in the Philippines,” said House of Investments chairperson Helen Dee.

For his part, Ayala chairman and chief executive officer Jaime Augusto Zobel de Ayala said the possible merger of iPeople and AEI “would create significant synergies that would enable us to better equip students for compelling futures.”

All terms and conditions of the proposed merger, including the involvement of House of Investments and Ayala in the management of iPeople would be subject for approval by the parties’ respective boards of directors.

The transaction would also be subject to regulatory approvals as well. – Rappler.com