Mitsubishi stays in Ayala
January 28, 2019 | 00h00
Despite a series of stock sales
MANILA, Philippines – Mitsubishi Corp., Japan’s largest sogo shosha, will continue its partnership with the Ayala Group even as it recently reduced its stake in the country’s oldest conglomerate, company officials told the STAR.
âAlthough as part of the portfolio review we have decided to sell some stocks (but) we still view Ayala as one of the important partners in the Philippines,â said Takaki Hiraoka, member of the relations team. public companies of Mitsubishi.
In an email response to The STAR, Hiraoka said Mitsubishi’s decision to further reduce its stake in Ayala Corp. did not translate into a reduction in its presence in the Philippines.
Earlier this month, Mitsubishi sold 13 million Ayala shares to P900 each, raising some $ 224 million or P11.7 billion.
Mitsubishi offered nine million shares but ended up selling 13 million shares due to strong demand that allowed them to increase the supply.
The buyers were quality investors, a mix of locals and foreigners, including large institutions that know the Philippines very well.
In March last year, Mitsubishi, which then held a 10 percent stake in Ayala, also reduced its stake in the conglomerate to 8.78 percent.
At the time, Mitsubishi unloaded 8.5 million shares of the conglomerate at a discounted price of 934 pesos per piece.
After the sale of shares in March 2018 and January 2019, Mitsubishi’s remaining stake in Ayala now stands at 6.59%.
âOur remaining stake in Ayala Corp is 6.59%. We are constantly reviewing our portfolio and the secondary sale from last March, carried out at the party this time, âsaid Sotaro Harasawa, also a member of Mitsubishi’s public relations team.
Mitsubishi has been an Ayala partner since 1974, collaborating on various projects.
In the future, Mitsubishi will continue to seek opportunities in Southeast Asia, including the Philippines, the two officials said.
âWe do not disclose our strategy regarding investments from particular countries, including the Philippines. But again, we see Ayala as one of the important partners in the Philippines. Since the Asian market has a great opportunity, we would like to update our strategy out of necessity, âsaid Takaki.
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, on the other hand, is one of the largest conglomerates in the Philippines with activities in real estate, financial services, telecommunications, water, electronics manufacturing services, automotive, manufacturing electricity, transport infrastructure, education and health. Its corporate social responsibility arm, the Ayala Foundation, offers programs focused on education, youth leadership, sustainable livelihoods, and arts and culture.