ALI consolidating with subsidiaries to carry out restructuring plan

Ayala Land Inc. (ALI), the property development unit of Ayala Corp., is consolidating with at least 34 subsidiaries as part of an internal restructuring plan to simplify management and ownership structures.

The Board of Directors of Ayala Corp approved its consolidation during a special meeting last week.

ALI has direct ownership of 24 entities, while the others are owned indirectly either through Ayala Land Estates Inc. or AyalaLand Hotels and Resorts Corp.

The planned merger will be filed with the Securities and Exchange Commission once the stockholders’ approval is obtained during ALI’s annual meeting on April 25.  ALI is confident that regulatory approval will be secured within the year.

“The transaction is expected to result in operational synergies, efficient fund management, and simplified reporting to government agencies,” a statement from ALI said.

The company, following the merger, will issue about 883.2 million Treasury shares, subject to regulatory approvals on the merger and issuance of shares.

ALI’s outstanding common shares, net of treasury shares, will be approximately 15.05 billion after the merger, while its outstanding preferred shares will stay at around 12.44 billion before and after the transaction.

ALI closed 2023 with a net income of P24.5 billion, up 32 percent year-on-year, due to robust property demand and heightened consumer activity.  Last year, it launched 25 projects worth a total of P75.9 billion.

The company has more than 12,000 hectares in its landbank and 30 estates and is present in nearly 60 growth centers across the country. It boasts a portfolio of residential developments, shopping centers, hotels and resorts, and office buildings.

ALI shares were up by P1.40 or 4.33 percent at P33.70 each last week.