BBM backs Mitsubishi's $700-M Ayala investment

SINGAPORE — President Ferdinand Marcos Jr. has supported the $700-million investment of Japanese carmaker Mitsubishi Corporation in Ayala Corporation, raising its stake from 4.7 to 15 percent.

The investment is expected to be among the largest foreign equity investments in the Philippines in recent years, which was discussed during the meeting of Marcos and other government officials with Mitsubishi executives here, as part of the President’s working visit.

Last month, Ayala Corporation announced the signing of a definitive agreement with Mitsubishi Corporation to significantly expand Mitsubishi’s investment in Ayala, marking a new chapter in a long-standing relationship anchored on shared values, responsible business stewardship, and a common commitment to supporting the Philippines’ sustainable development.

The agreed transaction was based on the agreed subscription and acquisition price of P650 per common share.

It comprises a combination of primary and secondary shares, including a voluntary tender offer. Upon completion, Mitsubishi’s economic ownership in Ayala will increase from 4.7 percent to 15 percent, and its voting stake to 20 percent, reinforcing its position as one of Ayala’s largest long-term strategic shareholders.

Subject to the requisite shareholder and regulatory approval for the proposed amendments to Ayala’s Articles of Incorporation, Ayala’s Board of Directors will be expanded from seven to nine members.

Also, the two companies updated the President on the agreements signed during his State Visit to Tokyo in May, including the Philippines’ first Intelligent City initiative in Makati and partnerships to expand digital finance through GCash.

President Marcos reaffirmed the government's strong support for these investments, pointing to key policy enablers like fiscal incentives under the CREATE MORE Act, Green Lane expedited processing, and full foreign ownership in renewable energy that accelerate project execution and align with national development targets.

Vena Energy

Subsequently, the President met with executives from Vena Energy, a Singapore-headquartered renewable energy developer with an 8.6-gigawatt (GW) portfolio of solar, wind, and hybrid projects across the Asia-Pacific.

Its presence in the Philippines is anchored by major utility-scale projects in Pangasinan and Ilocos Norte.

On top of 887 MW of operational capacity and about 1.26 GW under construction, Vena Energy plans to build an additional 1.29 GW capacity, backed by an additional P52-billion equity infusion, over the next two years.

These developments directly align with the Philippines’ national targets of achieving a 35 percent renewable energy share in power generation by 2030 and 50 percent by 2040.