Mitsubishi eyes more collaboration with Ayala Group
MANILA, Philippines — Japan’s Mitsubishi Corp., is collaborating further with Ayala Corp. in the future even after reducing its stake in the Philippines’ oldest conglomerate.
Mitsubishi has been a partner of Ayala since 1974, collaborating in various projects in the Philippines.
The partnership is not likely to end, a representative from Mitsubishi said over the weekend.
“We continue to be open to considering future opportunities to seek further collaboration with Ayala while contributing to the sustained growth of the Philippines economy. The sale is partial, and after this sale, we will still have 8.78 percent stake,” Yuri Takeuchi, a member of Mitsubishi’s press team, told The STAR by e-mail.
Last Tuesday, Mitsubishi, which held a 10 percent stake in Ayala Corp., trimmed its stake in the conglomerate, sending Ayala’s shares tumbling 7.23 percent to P937 per share that day from P1,010 per share on Monday,
Mitsubishi unloaded 8.5 million of the conglomerate’s share at a discounted price of P934 per piece.
Takeuchi said the sale is just part of the Japanese trading company’s rebalancing efforts.
“The sale of Ayala Corp. shares is just part of our strategy of portfolio management, and rebalancing of our assets,” she said.
In all, she said the company continues to have very high regard for Ayala.
“We highly value our 40+ years of partnership with Ayala and continue to put great importance on this relationship. Our collaboration is seen in the sectors of real estate, power, automotive, etc.,” she said.
Asked if Mitsubishi would further reduce its stake in the Philippine conglomerate, she said there are no plans at this time.
The Japanese trading giant is also not eyeing to transfer its investments in other Philippine companies, at least for now.
“At this time we have no specific plan for further reduction in stake in Ayala, nor for additional investments in Philippine conglomerates,” she said.
In 2013, Mitsubishi sold its 5.7 percent stake in Ayala-owned Manila Water Co. Inc. for P2.8 billion to Ayala amid an arbitration issue at the time. After the sale back then, Mitsubishi was left with a 1.2 percent interest in Manila Water.
Mitsubishi is touted as Japan’s largest trading company, with at least seven business segments such as finance, banking, energy, machinery, chemicals and food.
Ayala Corp. is one of the largest conglomerates in the Philippines with businesses in real estate, financial services, telecommunications, water, electronics manufacturing services, automotive, power generation, transport infrastructure, education, and healthcare.
Last year, the conglomerate grew its net income 16 percent to P30.3 billion.
Source : https://www.philstar.com/business/2018/03/26/1800260/mitsubishi-eyes-more-collaboration-ayala-group
