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MANILA – Ayala Corp. has raised P6.45 billion from the sale of treasury shares to bankroll the expansion of its infrastructure and power ventures.
In a disclosure, the Philippines’ oldest conglomerate said it completed the placement of 15 million common shares held in its treasury at P430 apiece, representing a 6 percent discount to its closing market price of P458 each on Tuesday.
Over the next five years, Ayala plans to pour up to $1 billion in the transport and power generation sectors as it eyes toll road, rail, and airport projects under the government’s public private partnership program (PPP) and establish, as well as renewable and conventional energy sources.
“The company is in a phase of active investment and is eyeing to build new businesses in power and transport infrastructure," said Fernando Zobel de Ayala, Ayala president and chief operating officer.
"In the same manner Ayala invested in the telecom and water sector in the past, we believe the power and infrastructure sectors are critical for the country’s growth and development. We hope to be able to contribute in some measure to the development of these sectors and at the same time create future sources of earnings and value for the group," he added.
After winning the bid for the Daang Hari-South Luzon Expressway Connector Road Project last December, the company has set its sights on the Ninoy Aquino International Airport Expressway, the Cavite-Laguna Expressway, and the Light Rail Transit Line 1 extension and operation and maintenance. It recently formed a strategic partnership with Metro Pacific Investments Corp. to jointly pursue light rail projects in Metro Manila.
Ayala is also keen on the development of airports such as the Mactan Cebu International Airport.
In the power generation sector, Ayala committed $100 million of equity on approximately 180 megawatts of gross generating capacity of conventional and renewable technologies.
In partnership with the Phinma group, Ayala began construction of a 135-megawatt circulating fluidized bed power plan thermal plant in Calaca, Batangas, with plans of a possible second phase.
Ayala is also building its portfolio of renewable energy sources, such as solar, wind and hydro technologies, recognizing the country’s need for both base load capacity and alternative energy sources. Investments in these technologies will depend on the implementation of the feed-in-tariffs, which the government is expected to announce in the coming months.
The company will also actively pursue a robust pipeline of greenfield projects and acquisition opportunities in the power sector.
Ayala also continues to explore opportunities in other markets in the region. It recently acquired a 10 percent stake in Ho Chi Minh Infrastructure Investment Co., a leading player in the infrastructure sector in Vietnam.
Outside of its foray into infrastructure and power, AC has businesses in water utility, telecommunications, real estate, financial services, electronics, information technology and business process outsourcing services, automotives, among others.
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