Ayala board approves P8-B private placement
CONGLOMERATE Ayala Corp. said on Tuesday its board of directors has ratified the issuance of 8.81 million of the company’s common shares at a price of P916.00 per share to a foreign institutional investor
Ayala Corp. did not name the new investor.
“Further to our disclosure on July 21, 2018, please be informed that our Board of Directors, at its regular meeting held today, ratified and approved the resolution of the Executive Committee authorizing the issuance of 8,810,000 common shares of stock at a price of P916 per share to a foreign institutional investor,” it said in a filing.
In July, the conglomerate said it raised P8.07 billion from a private placement with an institutional investor, allowing the group to increase its public float to 52.3 percent from the previous 51.6 percent.
“We intend to use the proceeds to acquire properties or assets needed for the business of Ayala or for payment of debt contracted prior to the issuance of these shares,” Ayala Chief Finance Officer Jose Teodoro Limcaoco said at the time.
Ayala Corp. is one of the oldest conglomerates in the Philippines. It targets hitting a net income of P50 billion by 2020.
In the first half of the year, Ayala grew its net income by 7 percent to P16.06 billion from P15.05 billion last year on the strong performance of its property, telecommunications, and power businesses.
For the second quarter alone, net income grew 3 percent to P8.4 billion, as the lower income and higher operating expenses of banking arm Bank of the Philippine Islands tempered earnings.
Ayala Corp. shares finished down P18.50 at P895.50 each on Monday.
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