12 January 2015 -- Ayala Corporation (“Ayala” or “AC”) announced that it assisted its real estate unit, Ayala Land, Inc. (“Ayala Land”) raise funds through a placement of 484,848,500 common shares at a price of Php33.00 per share (the “Offer Price”). The placement was conducted via a bookbuilt offering structured as a top-up placement with all the proceeds to be received by Ayala Land.
The equity placement is expected to raise an aggregate of Php16 billion in proceeds which Ayala Land intends to use for its expansion projects. Ayala Land has set aside Php100 billion in planned capital expenditure this year for its various projects.
Ayala Corporation Chairman and CEO Jaime Augusto Zobel de Ayala said “This equity placement will help Ayala Land pursue its growth plans and achieve its long-term strategy. We remain committed and supportive of Ayala Land, and continue to believe that it is a key component of our portfolio and an important driver of growth at Ayala Corporation.”
As a result of this transaction, AC’s holdings in common shares will be reduced to 47.3% from 48.9% but AC will retain voting control at over 68.9%.
Ayala Corporation’s share price last closed at Php 715 per share reflecting a 3% increase year-to-date. Ayala Land’s share price has likewise increased by 4% year-to-date, closing at Php35 per share on January 9, 2015.
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