Ayala to complete $1 billion asset sale this year

May 29, 2023 - 6:01 PM
File photo of Ayala north exchange (Ayaland/Released)

 Philippine conglomerate Ayala Corp AC.PS is looking to sell about $400 million worth of assets this year, the final step in a multi-year plan to raise $1 billion to fund investments in high-growth businesses, its chief executive said on Monday.

The Philippines’ oldest industrial conglomerate unveiled a plan in 2021 to generate $1 billion by selling assets, including some non-core businesses, and could meet its goal this year, Chief Executive Cezar Consing told reporters.

“It is basically recycling capital where there are more immediate opportunities,” he added.

Ayala has sold $600 million worth of shares in several companies, through efforts such as cutting its stake in utility Manila Water Co MWC.PS, and divesting from a tollroad concession and a coal-fired power plant by the end of last year.

Ayala could put up for sale its minority share in a railway system in Manila, the capital, Consing said, adding it sees robust interest from both domestic and overseas buyers.

Sale proceeds will fund projects on health and logistics, areas the company sees as offering new sources of revenue beyond its core portfolio of property, banking, telecoms and energy.

Since 2015, its healthcare unit has built a portfolio of generic retail pharmacies, multi-specialty clinics, full-service hospitals, and telemedicine.

—Reporting by Neil Jerome Morales; Editing by Clarence Fernandez