Mitsubishi to raise Ayala stake to 15% in P44.5-billion deal - Rappler
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DEAL. Executives from both Mitsubishi Corporation and Ayala Corporation pose for a photo after signing off on a P44.5-billion deal.
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MANILA, Philippines – Japanese trading giant Mitsubishi Corporation is increasing its stake in Ayala Corporation through a P44.5-billion transaction that will bring in fresh capital to the Philippine conglomerate to reduce debt, buy shares, and support new developments.
Ayala said on Monday, September 21, that it had signed a definitive agreement with Mitsubishi covering a mix of primary and secondary shares priced at P650 apiece.
Once completed, Mitsubishi’s economic ownership in Ayala will rise from 4.7% to 15%.
Ayala expects to receive around P20 billion directly from the transaction. It said the proceeds would be used to reduce debt, continue buying shares of Ayala and its listed subsidiaries, and support future growth.
The amount is sizeable relative to Ayala’s parent-level balance sheet. As of end-June, the company had P19.9 billion in parent cash and P138.2 billion in parent net debt, meaning the expected proceeds are roughly equal to its cash balance and about 14% of its net debt.
Not all the money will necessarily go toward deleveraging. Ayala has also been buying shares it considers undervalued and still had P10.1 billion available under its share purchase program as of its April stockholders’ meeting. The program covers both Ayala and its listed subsidiaries.
The deal also gives Mitsubishi a considerably larger role in Ayala itself.
Its voting interest will rise to 20%, compared with 15% economic ownership. Ayala also plans to expand its board from seven to nine directors, subject to shareholder and regulatory approval, although it has not disclosed who will occupy the two additional seats.
The deal will not displace the Zobel family’s control of Ayala. As of end-2025, Mermac, Inc., the family’s holding company and Ayala’s controlling shareholder, held 47.84% of the conglomerate’s common shares and 57.79% of all voting shares.
As part of the transaction, Ayala will also conduct, on Mitsubishi’s behalf, a voluntary tender offer for up to around 30 million common shares at P650 each.
“Mitsubishi’s increased investment in Ayala Corporation is designed to grow value for Ayala’s shareholders by combining global reach and technology of one of Japan’s leading trading houses with the assets of one of the Philippines’ most diversified conglomerates,” Ayala president and CEO Cezar Consing said, describing the deal as “turbo-charging a 52-year relationship.”
The expanded alliance comes just as another Ayala-Mitsubishi investment prepares to enter the stock market. (READ: Stage set for GCash’s record P92.3B IPO, October 20 listing eyed)
While the P44.5-billion deal is not related to GCash specifically and spans a much broader set of sectors, from infrastructure and energy transition to real estate, mobility, logistics, and digital technologies, Mynt is a concrete example of the kind of collaboration Ayala and Mitsubishi are looking to deepen.
Mitsubishi already has an indirect stake in Mynt, the parent company of GCash. Mitsubishi acquired 50% of Ayala’s venture arm, now called AM50 Ventures, which holds an investment in Mynt. Before the joint venture, Ayala had built that vehicle’s Mynt stake to about 13%.
Mynt is now preparing for an October 20 listing on the Philippine Stock Exchange. The PSE approved an IPO of up to 8.03 billion firm shares at as much as P10 each, plus an overallotment option of up to 1.20 billion shares, with the offer period scheduled for October 6 to 12. – Rappler.com
