Started as a distillery during Spain’s colonial rule in 1834, Ayala has grown into one of the country’s largest conglomerates with a portfolio that spans property, banking, telecommunications, power and manufacturing.
The Zobel family’s seventh generation continues to lead the group, with a few of its eighth-generation members occupying key positions within the conglomerate.
During the company’s annual stockholders’ meeting on Friday, Consing signalled the group will be more pragmatic in deploying capital amid the uncertain business climate and expectations that interest rates will stay higher for longer.
Expansion is still in the cards as the conglomerate plans to raise capital spending this year by 14 percent to P284 billion. The bulk of the spending will be done by Ayala Land and renewable energy business ACEN Corp.
Speaking of pharmacies, growth areas include healthcare and the rebranded automotive group AC Mobility, which is accelerating the adoption of electric vehicles in the country through portfolio brands such as China’s BYD and South Korea’s Kia.
Funding will also come from an ongoing divestment program of non-core businesses to raise over $1 billion (P57.7 billion). Assets on the selling block include its stake in the Light Rail Transit Line 1 in Metro Manila and its remaining shares in Manila Water Co.
GCash, the hugely popular mobile wallet of Ayala’s Globe Telecom and China’s Ant Group that’s been valued by investors at over $2 billion, has been mulling an initial public offering for some time.
But timing has been tricky given very volatile market conditions.
Consing said a GCash IPO could still be 12-18 months away.
Ayala chief finance officer Alberto M. de Larrazabal said fundraising requirements this year amount to about P19 billion to refinance existing debts.
Depending on market conditions, Ayala can upsize the amount by another P10 billion to meet obligations coming due in the first quarter of 2025.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
