Marcos backs Mitsubishi's $700M Ayala investment

SINGAPORE — President Ferdinand Marcos Jr. has expressed support for Mitsubishi Corporation's $700-million investment in Ayala Corporation, a deal that will increase the Japanese conglomerate's economic stake in the Philippine company from 4.7 percent to 15 percent.

The investment, valued at approximately P44.5 billion, was discussed during a meeting between Marcos, government officials and Mitsubishi executives as part of the President's working visit to Singapore.

The transaction is expected to rank among the largest foreign equity investments in the Philippines in recent years.

Ayala announced on 21 September that it had signed a definitive agreement with Mitsubishi to expand their longstanding strategic partnership.

Under the agreement, Mitsubishi will acquire shares at ₱650 apiece through a combination of primary and secondary shares, including a voluntary tender offer.

Upon completion, Mitsubishi's economic ownership in Ayala will rise to 15 percent, while its voting stake will increase to 20 percent, making it one of the Philippine conglomerate's largest long-term strategic shareholders.

Ayala's board of directors will also expand from seven to nine members, subject to shareholder and regulatory approvals for amendments to its Articles of Incorporation.

During the meeting, Mitsubishi and Ayala executives also updated Marcos on agreements signed during his state visit to Tokyo in May, including the Philippines' first Intelligent City initiative in Makati and partnerships to expand digital financial services through GCash.

Marcos reaffirmed the government's support for foreign investments, citing fiscal incentives under the CREATE MORE Act, expedited processing through Green Lane mechanisms and policies allowing full foreign ownership of renewable energy projects.

Vena Energy eyes P52B investment

Marcos also met with executives of Singapore-based Vena Energy, which plans to invest an additional P52 billion in renewable energy projects in the Philippines over the next two years.

The company operates an 8.6-gigawatt portfolio of solar, wind and hybrid energy projects across the Asia-Pacific region, with major Philippine developments in Pangasinan and Ilocos Norte.

Vena Energy currently has 887 megawatts (MW) of operational capacity and approximately 1.26 gigawatts (GW) under construction in the Philippines.

The planned investment will support an additional 1.29 GW of generating capacity over the next two years.

The expansion supports the Philippine government's target of increasing renewable energy's share of power generation to 35 percent by 2030 and 50 percent by 2040.