Ayala Land subsidiary hikes stake in Malaysia-based holding company

Regent Wise Investments Limited (RWIL), a wholly-owned subsidiary of Ayala Land Inc. (ALI), has signed a share purchase agreement to hike its stake in Malaysia-based investment holding company MCT Bhd. to 50.19 percent for RM202 million (P2.506 billion).

In a regulatory filing, ALI said RWIL acquired a total of 230,115,574 shares or 17.24 percent of the total outstanding shares of MCT at a price of RM0.88 apiece on January 2.

The shares were acquired from a certain Tan Sri Barry Goh at a total transaction cost of RM202,501,705.12 which will be paid in tranches.

The first 49 percent will be due within three business days after the completion date, another 37 percent will be paid one month after the completion date, and the balance will be completed 11 months after the completion date.

Listed on the Main Market of Bursa Securities in Malaysia, MCT is an investment holding company with subsidiaries involved mainly in property development, management, and investment, and construction businesses.

According to its official website, MCT currently has an existing landbank of over 540.2 acres, of which only 20.4 acres have been fully developed.

"On-going and soon-to-be launched projects with a combined gross development value (GDV) of approximately RM8 billion account for another 209.9 acres, leaving 309.9 acres for future projects with a conservatively estimated GDV of approximately RM5 billion," it said.

"We are collaborating closely with Ayala to create synergies for both organizations and to accelerate our emergence as a key property player in the Malaysian market," it added.

Share prices of ALI closed Wednesday at P45.50 apiece, up by P0.90 or 2.02 percent from the previous close of P44.60. — BM, GMA News