Consing, in an interview with Bloomberg Television on Wednesday, said the early gains would come from cutting debt, buying deeply discounted shares, enforcing tougher return targets and pushing Ayala businesses to distribute higher dividends.
“This is long-term money, long, long-term money, in the same way that Ayala is a 200-year almost a 200-year-old company committed to the Philippines,” he said.
“We're talking long-term value creation here. And we'll do it in a way that, frankly, shareholders should see even in the short term,” he added.
Mitsubishi once owned 20 percent of Ayala, whose core assets span banking, telecommunications, real estate, clean energy, manufacturing, cars and logistics. Mitsubishi had gradually reduced its holdings to 4.7 percent, but the new transaction will bolster its economic stake to 15 percent.
Ayala’s game plan
Ayala, currently valued at around P300 billion, will receive about P20 billion from the deal, giving management fresh ammunition to execute its plans.
“So that 20 billion pesos we'll use to, number one, reduce debt, number two, acquire shares in some of our listed companies that we feel are grossly undervalued, and number three, grow some of our businesses,” Consing said.
The broader transaction with Mitsubishi includes a tender offer for up to about 30 million shares at P650 each. At that price, Ayala would be valued at about P400 billion.
Mitsubishi moves deeper into Ayala
Mitsubishi will gain two seats on Ayala’s expanded nine-member board and deploy about a dozen people across the parent and key operating companies, Consing said.
“They'll help us out and help us think through the kind of focus and discipline that is needed to really create the kind of values we're all looking for here,” he said.
New partnership opportunities
Consing identified several areas where Ayala and Mitsubishi plan to deepen cooperation:
The partners also plan to connect these businesses into a broader ecosystem play.
Putting the Philippines back on the map
Consing described the deal as the Philippines’ largest foreign direct investment this year, saying, “This is the kind of transaction that I think will force people to look at the Philippines again.”
He said Mitsubishi views Ayala and the broader Philippine market as deeply undervalued and believes its “value up” strategy in Japan can provide a blueprint for improving the conglomerate’s focus, returns and valuation.
“This market is vastly, vastly undervalued. Mitsubishi has the courage to recognize that and to agree with us that this is the time to do something about it,” Consing said.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
