MANILA, Philippines - Ayala Corp. (AC), the country’s oldest conglomerate, is looking to expand its portfolio in Southeast Asia, one of the most robust regions in the world in terms of economic growth.
Investments in Vietnam and Indonesia will be the jumpstart point for more projects in neighboring countries, its top executive said.
“We have begun to move into the space in Vietnam and Indonesia as first steps,†chairman Jaime Augusto Zobel de Ayala said in a Bloomberg Tele-vision interview.
Zobel said the company does not see reasons for it to stop with the two countries.
Late last year, the conglomerate acquired an initial 49-percent stake in a Vietnamese firm that will undertake infrastructure projects in the emerging market.
AC signed an agreement with Ho Chi Minh City Infrastructure Investment Joint Stock Co. (CII) and some other Vietnamese investors to form a joint venture, VinaPhil Technical Infrastructure Investment JSC, which will have an initial capitalization of around $43 million.
In April, AC acquired a 10-percent stake in CII, which is listed on the Ho Chi Minh Stock Exchange, concurrent with Manila Water Co. Inc.’s acquisition of a 47.35-percent interest in Kenh Dong Water Supply JSC.
In October, AC unit Manila Water bought a 51-percent stake of Indonesia’s Suez Environment in PT PAM Lyonnaise Jaya, which is operating the water supply concession contract in Western Jakarta.
But the Philippines will not be left behind.
For instance, property giant Ayala Land Inc. allotted P65.5 billion for the completion of ongoing developments and launch of 69 new projects with a combined value of P129 billion. Last year, ALI spent a record P71 billion for project and capital expenditures as it launched 67 new projects, riding on the property boom.
Zobel said the conglomerate will focus on consumers that purchase houses, open bank accounts and use mobile phones.
The Philippine economy, one of the top performing in Asia, is experiencing robust consumer spending driven by continued growth in overseas remittance.
The growth in the country’s economy has benefited the group as a whole, Zobel said.
AC is into property (Ayala Land), banking (Bank of the Philippine Islands), telecommunications (Globe TelecomInc.), utilities (Manila Water), electronics (Integrated Microelectronics Inc.), car dealership (Ayala Automotive Holdings Corp.), business process outsourcing (LiveIt Solutions Inc.) and energy (AC Energy Holdings, Inc.). It is also pursuing several infrastructure projects in the Philippines.