MITSUBISHI Corp. will increase its economic stake in Ayala Corp. to 15% from 4.7% under a P44.5-billion transaction that will also raise the Japanese company’s voting interest in the Philippine conglomerate to 20%.
Ayala Corp. said in a disclosure on Monday that the transaction, valued at about $700 million, is based on an agreed subscription and acquisition price of P650 per common share and involves a combination of primary and secondary shares, including a voluntary tender offer.
The company expects to receive about P20 billion in proceeds, which it plans to use to reduce debt, continue its share purchase program covering Ayala Corp. and its listed subsidiaries, and fund future growth initiatives.
As part of the transaction, Ayala Corp. intends to conduct a voluntary tender offer on behalf of Mitsubishi for up to about 30 million common shares at P650 apiece.
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