Ayala opens P19.5-B exit door for investors

Ayala Corp. (AC) is giving shareholders a chance to cash out through a nearly P19.5-billion share buyback, offering a fixed selling price as the conglomerate moves forward with a major transaction linked to Japanese giant Mitsubishi Corp.

In a regulatory filing on Wednesday, AC said it intends to launch a voluntary tender offer on 4 November to acquire up to 30.07 million common shares at P650 apiece.

The offer covers approximately 4.85 percent of AC’s outstanding common stock, translating to a potential P19.54-billion payout if all targeted shares are acquired.

The transaction opens an opportunity to sell their holdings directly to the conglomerate at a predetermined price, rather than relying solely on stock market trading.

It also comes as AC advances a transaction tied to Mitsubishi’s additional investment, potentially changing the conglomerate’s shareholder base depending on the outcome of the buyback.

In its formal notice to shareholders, AC said it intends to acquire the shares through a public and voluntary tender offer, subject to certain conditions.

“This is to advise you that AC is intending to acquire from all holders of its common shares, through a public and voluntary tender offer, 30,067,392 Common Shares, representing approximately 4.85 percent of the total issued and outstanding Common Shares of AC, at a price of P650 per Common Share, subject to the satisfaction or waiver of certain conditions,” the company said.

The planned buyback follows the 21 September approval by AC’s board of directors of the voluntary tender offer in connection with Mitsubishi’s additional investment in the conglomerate.

While the offer provides shareholders with a fixed exit price, its attractiveness will depend on how the P650 offer compares with AC’s prevailing market price.

The transaction could also reduce the number of shares held by existing investors, although AC has yet to disclose how the repurchased shares will be treated or how the transaction will ultimately affect its ownership structure.

AC said it would file a tender offer report with the Securities and Exchange Commission and the Philippine Stock Exchange detailing the terms, conditions and procedures for shareholders wishing to participate.