MANILA, Philippines – A massive company is expected to emerge from Ayala Corporation, the country’s oldest conglomerate, as it consolidates its energy, water, transportation, and logistics businesses under one holding company.
In a disclosure to the Philippine Stock Exchange on Monday, April 20, Ayala said the integrated infrastructure company will house two listed companies – AC Energy Philippines and Manila Water – as well as unlisted AC Infrastructure Holdings.
Ayala said it would use AC Energy as the vehicle for the consolidated entity, which will be renamed to AC Energy and Infrastructure Corporation.
“We believe that consolidating our various infrastructure interests creates a formidable platform with a strong balance sheet and allows Ayala to participate in the many opportunities in infrastructure development in a more significant way,” Ayala chairman and chief executive officer Jaime Augusto Zobel de Ayala said.
The new company joins the Ayala empire, which also includes Ayala Land, Bank of the Philippine Islands, and Globe Telecom.
The announcement of the consolidation comes as Manila Water finalizes the takeover of port and gaming tycoon Enrique Razon Jr.
Ayala’s press release did not disclose how the consolidation would impact the talks.
In the annual stockholders’ meeting of Manila Water held online last Friday, April 17, Manila Water chairman Fernando Zobel de Ayala said the deal is “moving quite well” and may be finalized by May or June.
Zobel, who is also Ayala’s president and chief executive officer, said the consolidation “can generate a host of opportunities” for the conglomerate’s infrastructure businesses.
He added that they will continue to significantly invest in the water sector. – Rappler.com
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