Ayala Corp. is the name making the rounds, and it’s not hard to see why.
Like many other conglomerates, Ayala has seen its share price and those of its units come under pressure, no thanks to the escalating war in the Middle East.
An insider said this has proved deeply disappointing to the controlling family and its team of professional managers and bankers.
Conglomerates often trade at a discount to their value, but an insider at a brokerage said Ayala’s shares are trading at about 40 percent below net asset value.
Normally, companies implement limited share buybacks to support their stock, but recent examples suggest this once-reliable tool has lost much of its punch.
The rumored tender deal, which is usually executed above the current share price, would also bring Ayala closer to its estimated worth and send a strong signal that the market has priced the mega corporation too low.
Under a tender offer, a buyer publicly offers to purchase Ayala shares from existing shareholders at a stated price.
Meanwhile the recent uptick in the share price and surge in volume indicates something is happening soon with the country’s oldest conglomerate.
A spokesperson for Ayala did not immediately respond to requests for comment.
To be clear, this isn’t a distressed business group, and its stewards have proven their ability to endure and thrive through multiple crises across the country’s history.
If this pushes through, the next question is how far the tender goes and whether it could eventually lead to another delisting from the Philippine Stock Exchange.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
