THE Ayala Group is consolidating its industrial businesses by transferring its stake in a semiconductor manufacturing arm to AC Industrial Technology Holdings Inc. (AC Industrials), the group’s industrial holdings subsidiary.
In a statement on Wednesday, Ayala Corporation said its wholly owned subsidiary AYC Holdings Ltd. (AYC), held through AC International Finance Ltd. (ACIFL), is transferring its 50.6-percent stake in Integrated Micro-Electronics Inc. (IMI) to AC Industrials.
It said the transfer will be made through a special block sale, which was granted exemptive relief by the Securities and Exchange Commission from the mandatory tender offer but is still subject to the approval of the Philippine Stock Exchange (PSE).
The exemptive relief from the tender offer was given “on the ground that the change in the form of Ayala’s ownership of the IMI shares is by no means a takeover by a third party and will not affect the management and control of IMI.”
“This transaction consolidates Ayala’s existing assets in manufacturing and vehicle distribution and dealership under AC Industrials, creating a platform to execute on Ayala’s vision to assemble a portfolio of businesses that own, develop, enable, manufacture, and commercialize automotive and other industrial technologies across various platforms to capture opportunities in the domestic and global markets,” AC said in a disclosure to the PSE.
“The transaction will have no impact to Ayala’s consolidated financial statements as this is just a transfer within the group from one wholly owned subsidiary to another,” it added.
IMI is the 21st largest electronics manufacturing service provider and the sixth largest automotive electronic manufacturing services provider in the world based on revenues, with technological and management expertise in automotive, telecom, and industrial electronics, among others, Ayala said.
AC Industrials currently holds Ayala’s interests in automotive distributorship which include a 13 percent stake in Honda Cars Philippines, Inc., a 15 percent stake in Isuzu Philippines Corp., a 100 percent stake in Honda Cars Makati, Inc., a 100 percent stake in Isuzu Automotive Dealers, Inc., a 100 percent stake in Automobile Central Enterprise Inc. and a 100 percent stake in Adventure Cycle Philippines Inc.
AC Industrials also manufactures KTM motorcycles and, through ACPI, is the official distributor of KTM motorcycles in the Philippines.
The Ayala group has businesses in water (Manila Water), telecoms (Globe), property (Ayala Land), banking (Bank of the Philippine Islands), infrastructure (AC Infrastructure Holdings Corp.), power (AC Energy Holdings Inc.), healthcare (AC Healthcare Holdings Inc.), and education (LiveIt Investments Ltd.), among others.