Mitsubishi boosts stake in Ayala through P44.5 billion transaction

Japan's Mitsubishi Corp. is increasing its stake in Ayala Corp. through a P44.5-billion transaction, solidifying its position as one of the Philippine conglomerate's primary long-term shareholders. Ayala announced a definitive agreement to substantially boost Mitsubishi's investment in the country's oldest conglomerate. The roughly $700-million deal combines a subscription and acquisition price of P650 per common share, including a primary subscription and a voluntary tender offer.

Mitsubishi's economic ownership in Ayala will climb from 4.7% to 15%, and its voting stake will rise from 20% to 20% following the completion of the transaction.

Ayala sees this investment as the beginning of a new chapter in a long-term relationship built on shared values, responsible business stewardship, and a commitment to the Philippines' sustainable development. With the expanded investment, both firms aim to intensify collaboration in key sectors such as infrastructure, energy transition, real estate, digital technologies, mobility, logistics, and other emerging industries.

Ayala anticipates receiving around P20 billion from the transaction, which will be utilized to bolster its financial position through debt reduction, continue its share purchase program, and support future growth initiatives.

Jaime Augusto Zobel de Ayala, chairman of Ayala, emphasized that this transaction goes beyond a mere capital investment; it represents the strength of a relationship forged over many years and a profound alignment in values, long-term thinking, and responsible business stewardship. "As we embark on this new chapter with Mitsubishi, we eagerly anticipate deepening our collaboration and creating lasting value for our stakeholders while contributing significantly to the country's ongoing progress," Zobel stated.

Ayala intends to conduct a voluntary tender offer for up to approximately 30 million common shares on behalf of Mitsubishi, giving public shareholders the chance to participate in the transaction and benefit from the agreed-upon P650 per share price.