Mitsubishi to triple stake in Philippine billionaire's Ayala Corp in $711M deal

Mitsubishi plans to significantly boost its investment in Philippine conglomerate Ayala Corp, acquiring a 15% stake through a $711 million deal. This move marks a major increase from the company's previous 4.7% ownership, as reported by Forbes.

The chairman of Ayala, Jaime Augusto Zobel de Ayala, emphasized that this investment is more than just a financial transaction. It represents a deepening of a relationship forged over many years, built on shared values, long-term vision, and responsible business practices.

Mitsubishi, headquartered in Tokyo, has been involved in Ayala since 1974, initially focusing on real estate and banking. The Japanese firm is also purchasing 71.9 million pesos worth of voting preferred shares, which will grant it a 20% voting rights stake.

As part of the agreement, Ayala will receive 20 billion pesos from the sale of new and treasury shares. These funds will be allocated towards repaying debt, continuing a share buyback program, and funding expansion across various sectors. The Zobel family and other current shareholders will walk away with 24.6 billion pesos from the transaction. However, this deal must still undergo regulatory approvals.

With a net worth of $2.8 billion as of August 2021, according to Forbes' Philippines 50 Richest list, the Zobel family is among the wealthiest individuals in the Philippines. Ayala, founded in Manila in 1834, has evolved into one of the country's most diverse conglomerates. Its business portfolio spans telecommunications, education, healthcare, automobile sales, renewable energy, logistics, shopping malls, hotels, and retail.