MANILA, Philippines — Property giant Ayala Land Inc. (ALI) is merging almost three dozen subsidiaries to simplify ownership structure.
In a disclosure, the Ayala Group’s listed real estate unit said 34 entities that are wholly owned directly by the company, or through AyalaLand Estates Inc. and AyalaLand Hotels and Resorts Corp., will be consolidated, with ALI as the surviving entity.
“The merger is an internal restructuring to simplify the ownership structure and is expected to result in operational synergies, efficient funds management and simplified reporting to government agencies,” ALI said.
The merger was approved by ALI’s board of directors at its special meeting yesterday.
The plan will be submitted for the approval of its stockholders during their annual meeting on April 25, 2024.
ALI said the 34 subsidiaries would also hold their annual stockholders’ meetings on or before April 25.
“The plan of merger will then be filed with the Securities and Exchange Commission and expected to be approved within the year,” it said.
The company said it would issue new common shares as consideration of the merger.
Based on the predetermined swap ratios, ALI will issue a total of 993.54 million shares, of which 883.17 million will be treasury shares.
The company’s resulting outstanding common shares after the merger, net of treasury shares, will be 15.052 billion.
Its outstanding preferred shares will remain at 12.442 billion before and after the merger.
ALI is a developer of large-scale, integrated, mixed-use and sustainable estates that are now thriving economic centers.
It offers a balanced and complementary mix of residential developments, shopping centers, offices, hotels and resorts and strategic investments.
ALI has more than 12,000 hectares in its landbank, 30 estates to include the Makati Central Business District, Ayala Alabang, Cebu Park District, Bonifacio Global City and Nuvali and presence in 57 growth centers across the country.