LISTED鈥俢onglomerate鈥侫yala Corp. is aiming to close its $1-billion鈥俤ivestment鈥俻lan within the year, its chief financial officer said.
鈥淢y hope is within the next four to six months, but clearly within the year,鈥 Ayala Corp. Chief Financial Officer Alberto M. de Larrazabal told reporters last week.
In 2021, Ayala Corp. announced its strategy to raise $1鈥塨illion from the sale of its assets and some noncore businesses to boost its core businesses in sectors such as real estate, banking, telecommunications, and energy. The conglomerate initially planned to finish the divestment last year.
However, Mr. De Larrazabal said that Ayala Corp. is still looking to divest approximately $350 to $400 million.
鈥淲e鈥檙e close to 70% (completion). One or two more deals and we鈥檙e done. There are quite a few. If you look at some of the smaller assets in the industrial portfolio. We鈥檝e mentioned in the past Light Rail Manila Corp. (LMRC)鈥 Then there鈥檚 the balance of Manila Water Co., Inc. We can do that in parts,鈥 he said.
鈥淲e only have about 20% (stake) in Manila Water, so I think $350 to $400 million. There鈥檚 still a few other smaller assets that we are working on,鈥 he added.
He also said that there has been more interest in the conglomerate鈥檚 plan to sell its 35% stake in LRMC following the fare hike approval in August last year.
LRMC operates and maintains the 20.7-kilometer Light Rail Transit Line 1 (LRT-1). Ayala Corp.鈥檚 stake in LRMC is held via the conglomerate鈥檚 AC Infrastructure Holdings Corp.
鈥淢anuel V. Pangilinan indicated interest. But we鈥檙e not at anywhere close to a final decision one way or another,鈥 he said.
Some of Ayala Corp.鈥檚 divested assets include the Muntinlupa-Cavite Expressway which was sold to the Villar Group for P3.8 billion, the divestment of ACEN Corp. from the South Luzon Thermal Energy Corp., and the sale of its Manila Water shares for P5.7 billion in October.
For the first nine months, Ayala Corp鈥檚 attributable net income climbed by 35% to P32.31 billion led by better results from subsidiaries Bank of the Philippine Islands (BPI), Ayala Land, Inc., and ACEN Corp.
The conglomerate鈥檚 nine-month consolidated revenues improved 13.5% to P245.38 billion from P216.2 billion last year.
Ayala Corp. shares were last traded on Feb. 16 at P709 apiece. 鈥 Revin Mikhael D. Ochave
