In a disclosure to the Philippine Stock Exchange, Ayala said its board approved the increase in the number of its common shares from 380 million shares to 600 million shares with a par value of P50 per share.
Also approved was the declaration of a regular cash dividend of P2 per share, payable on Jan. 30, 2007. The record date of shareholders entitled to the stock dividend shall be fixed by the SEC upon approval of said capital increase.
Ayala’s board also resolved to absorb PFC Properties Inc., a company owned by Purefoods Corp. that was not included in the sale to San Miguel Corp. in 2000. The company owns 99.85 percent of PFC which has assets with book value of P419.3 million including real estate properties in Laguna.
According to Ayala, the merger will allow the upstreaming of PFC’s assets at a minimal cost.
Ayala said the capital increase will be submitted for ratification of stockholders during the company’s annual meeting on March 30, 2007.
Ayala earlier signed a P2-billion loan with Metropolitan Bank & Trust Co. to prepay some of its obligations. It has $71.6 million worth of loans maturing next year. As of end-September this year, Ayala’s net debt at the parent level stood at P27.6 billion with net debt-to-equity at 0.40 to one.
Ayala controls number two lender Bank of the Philippine Islands, second-ranked telecom company Globe Telecom Inc. and leading property firm Ayala Land Inc.
The conglomerate is actively pursuing new investment opportunities that will allow it to maintain its track record for value creation in new and exciting industries and ultimately deliver sustainable growth to its investors.
While it continues to invest heavily in the Philippines, Ayala is also looking for more opportunities abroad to drive future growth.
Ayala as a group has invested around P75 billion domestically ($1.5 billion) in the past two years in businesses such as banking, property development, telecommunications and manufacturing.
It has earmarked P40 billion this year for its capital expenditures in the Philippines.
Ayala posted a net profit of P9.6 billion in the first nine months of the year, exceeding the P8.2 billion net profit reported for the whole of 2005 and 87 percent higher than the previous level.
The increased income was mainly driven by the improved performance of key subsidiaries and affiliates, lower financing charges, higher foreign exchange gains, and capital gains from sale of shares amounting to P4 billion.