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10/17/2014

SEC clears Ayala’s P15-b share sale

The Securities and Exchange Commission on Friday approved the P15-billion preferred shares offering of conglomerate Ayala Corp.

Ayala Corp. said in a filing with SEC it would offer up to 30 million new and separate series of preferred Class B shares at an offer price of up to P500 apiece.

The new series of preferred shares will have a fixed quarterly dividend rate, which shall be based on either five-year or seven-year Philippine Dealing System Treasury reference rates benchmark plus a spread to be determined at such time.

This series of preferred shares shall be non-convertible and shall have no voting and pre-emptive rights.

The preferred Class B shares, which shall be listed with the Philippine Stock Exchange, are structured as perpetual equity securities that have preference in payment of dividends.

Proceeds from the fund-raising activity will be used to finance the conglomerate’s infrastructure and power projects as well as for debt repayment.

The Ayala group recently made significant investments in the power and transport infrastructure sectors and allotted P24 billion in capital expenditures for projects in the two sectors.

Ayala Corp., through AC Infrastructure, has a 35-percent stake in the Light Rail Manila Consortium, which won the bidding for the LRT 1 Extension project while MPIC Light Rail Corp. of Metro Pacific Investments Corp. has a 55-percent interest. Macquarie Infrastructure Holdings (Philippines) Pte Ltd. owns the remaining 10 percent.

Team Orion, a 50-50 joint venture between Ayala and Aboitiz Land Inc., is also awaiting the notice of award from the Public Works Department for the P35.4-billion Cavite-Laguna expressway project.      
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Ayala Corp. earlier said it was looking for other infrastructure projects including the P123 billion Laguna Lakeshore Expressway Dike project.

Ayala Corp. registered a net income of P9.8 billion in the first half, up 34 percent from a year ago, driven by the solid performance of core businesses, particularly Ayala Land, Globe Telecom and Manila Water.

Equity earnings from Globe, which quadrupled year-on-year, more than offset the decline in the contribution of banking unit Bank of the Philippine Islands.

Ayala Corp. also raised $300 million in five-year bonds exchangeable for common stock of its property unit Ayala Land Inc. in May this year.  The bonds were listed on the Singapore Exchange Securities Trading Limited.
Source: manilastandardtoday

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