Ayala invests in Vietnam infrastructure company
Ayala invests in Vietnam infrastructure company
Conglomerate Ayala Corp. is investing in a Vietnamese infrastructure company as it seeks to widen its presence in an emerging economy that has also drawn the interest of other regional players.
A Philippine Stock Exchange filing on Thursday showed that Ayala and Ho Chi Minh City Infrastructure Investment JSC (CII), where Ayala owns a 10-percent equity interest, have agreed to invest in Vietnam’s VinaPhil Technical Infrastructure Investment JSC.
VinaPhil, which will have a start-up “charter capital” of $43 million, will be initially 49-percent owned by Ayala with the remainder held by CII and other Vietnamese investors. The deal is subject to customary closing conditions, including compliance with Vietnam laws, the disclosure said.
“While we remain focused on developing transport infrastructure projects in the Philippines, we believe this investment also provides the Ayala group strategic access and an option to pursue other infrastructure opportunities in the region,” Ayala President Fernando Zobel de Ayala said in a statement.
“We are pleased to have found a partner in Ayala Corp. which has a record for establishing strong long-term relationships,” Le Quoc Binh, CII general director, said in the same statement. “Furthermore, Ayala Corp.’s experience in water and real-estate infrastructure through its subsidiaries will be of help as other opportunities in these sectors arise,” he said.
Ayala is one of the largest conglomerates in the Philippines with businesses in real estate, financial services, telecommunications, and a broad range of investments in water, electronics, automotive, international operations and business-process outsourcing. It also recently made investments in the power generation and transport infrastructure sectors in the country. Ayala shares dipped 1.6 percent to P480 per share, giving the conglomerate a market value of P284.9 billion.
CII is a leading player in the infrastructure sector in Vietnam with a solid track record in sourcing, implementing and operating infrastructure assets. Ayala earlier this year acquired its stake in CII in conjunction with Ayala unit Manila Water Co. Inc.’s acquisition of a 47.35 percent share in Kenh Dong Water Supply JSC.
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