LISTED conglomerate Ayala Corp. (AC) is set to raise P15 billion funds through a preferred shares sale for future projects, particularly in power and infrastructure.
In a disclosure, AC said it will offer 30 million new and separate shares under Preferred Class B shares, priced at P500 per share.
The preferred shares will have a quarterly dividend rate. The company will set a benchmark rate prior to the issue date that shall be based on five-year or seven-year PDST-R2 benchmark plus a spread.
BDO Capital was appointed issue manager of the preferred shares.
The preferred shares may be redeemed at the end of fifth, seventh, and 10th years after the sale. Payment is cumulative. The series of preferred shares are non-convertible, with no voting and pre-emptive rights. AC said the Class B preferred shares are still “subject to regulatory approvals” and later will be listed at the Philippine Stock Exchange, to be traded under the “ACPB” symbol.
The oldest conglomerate in the country grew its first half consolidated net income by 34 percent to P9.8 billion, driven by higher sales of property, telecommunications, and water utility subsidiaries.
It had set aside P24 billion capital expenditures in 2014 for the company’s investments in the power and transport sector, several of which are public-private partnership (PPP) projects. The company is investing a total of $1 billion capex in the years 2012 to 2016 for energy and infrastructure projects.
AC recently won the Light Rail Transit 1-Cavite Extension bid, together with the Metro Pacific group, and was the highest complying bidder together with the Aboitiz group for the Cavite-Laguna Expressway project.
Founded in 1834 and incorporated in 1968, AC is the holding company of the Ayala family’s businesses which include water (Manila Water Company Inc.), telecoms (Globe Telecom Inc.), property (Ayala Land Inc.), semiconductors (Integrated Micro-Electronics Inc.), banking (Bank of the Philippine Islands), and education (LiveIt Investments) among others. It is 50.56-percent owned by Mermac Inc., 10.52-percent by Mitsubishi Corporation, and 38.92-percent by the investing public.