Ayala Land hikes stake in Malaysian firm

MANILA, Philippines – Ayala Land Incorporated is raising its stake in MCT Bhd, a Malaysian development and construction firm.

The property developer raises its stake to as much as 32.95% from the current 9.16% in its first venture in ASEAN (Association of Southeast Asian Nations) region.

In a disclosure to the stock exchange, Ayala Land said its wholly-owned subsidiary Regent Wise Investments Limited recently entered into call option agreements with the two founders and majority shareholders of MCT, Barry Goh Ming Choon and Tong Seech Wi.

The agreements will give Ayala Land the opportunity to increase its shareholdings in MCT up to a maximum of 32.95%.

The call options can be exercised for a month starting October 7, 2015.

“The signing of the agreement affirms Ayala Land’s confidence in its partnership with MCT and the synergies that will benefit both companies,” the property firm said.

In April, Ayala Land acquired a 9.16% interest in MCT Bhd through a private placement amounting to $43 million. Ayala Land will have one board seat in MCT.

Ayala Land said the investment in MCT Bhd will allow it to enter the Malaysian market with an experienced team, benefit from synergies of the partnership, and further add value to MCT over the long term to enable it to become a key player in the Malaysian real estate market.

Ayala Land is also looking at investment opportunities in Vietnam, Myanmar, and Indonesia.

MCT Bhd, meanwhile, was established in 1999 as a construction company. It specializes in mixed-use projects that include retail, office, hotel and mid- to affordable residential units.

MCT Bhd, which is listed under the main market of Bursa Malaysia, has several ongoing projects in OneCitySubang Jaya and Cyberjaya, as well as a land bank in Dengkil, 1.5 kilometers away south of Cyberjaya, all located in the Klang Valley in Malaysia. – Rappler.com