Written by Madelaine Miraflor, Reporter Published 19 July 2012
Ayala Corp. is set to invest $1 billion over the next five years in the transport infrastructure and power generation sectors, as it completed on Wednesday the placement of 15 million common shares held in its treasury.
In a disclosure to Philippine Stock Exchange, the shares were priced at P430 per share, a 6-percent discount to its closing market price of P458.
“This raised cash proceeds of P6.45 billion for Ayala, which it intends to use to fund several sizable projects it is eyeing in the infrastructure and power sectors,” the company said in a statement.
Ayala Corp. is now building a portfolio of power generation assets and has it sets its sights on toll road, rail, and airport projects under the government’s public-private partnership program (PPP).
“The company is in a phase of active investment and is eyeing to build new businesses in power and transport infrastructure. 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,” said Fernando Zobel de Ayala, Ayala Corp. president and chief operating office.
Recently, Ayala Corp. formed a strategic partnership with Metro Pacific Investment Corp. to jointly pursue light rail projects in Metro Manila.
In the power generation sector, Ayala Corp. has established a platform of conventional and renewable technologies and has committed around $100 million of equity for approximately 180 megawatts of gross generating capacity.
According to Ayala, the company began construction of a 135-megawatt thermal plant in Calaca, Batangas in partnership with the Phinma group’s Trans Asia Oil and Development Corp.
Ayala Corp. is also currently working on a possible second phase of expansion of the plant.
Recognizing the country’s need for both base load capacity and alternative energy sources, Ayala Corp. is also gradually building its portfolio of renewable energy sources in solar, wind and hydro technologies.
“Investments in these technologies will be shaped in part by the implementation of the feed-in-tariffs which the government is expected to announce in the coming months. Beyond these initiatives the company continues to actively pursue a robust pipeline of greenfield projects and acquisition opportunities in the power sector,” Ayala said.
Ayala Corp. also recently acquired a 10-percent stake in Ho Chi Minh Infrastructure Investment Co. (CII), a leading player in the infrastructure sector in Vietnam. CII holds toll road concession agreements such as the 15.7-kilometer expansion of the existing Ha Noi Highway which connects the North Eastern part of Ho Chi Minh City to Bien Hoa, an industrial center located in the southern part of Vietnam.
“Ayala believes this investment provides strategic access to other infrastructure opportunities which may present opportunities for the Ayala group to establish a presence across several sectors in Vietnam,” said Ayala.
Ayala Corp.’s share price rose by 46 percent year-to-date with market capitalization of over P260 billion. source
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