AYALA Corp., one of the country’s largest conglomerates, ventured into e-commerce business with the acquisition of a 43.3-percent interest in BF Jade E-Service Philippines Inc., the owner and operator of the online fashion platform Zalora Philippines.
Zalora is currently the Philippines’ largest online fashion destination offering over 120,000 products across more than 1,000 brands in accessories, beauty, clothing, shoes and sports. Ayala Corp. did not disclose the cost of the transaction.
The conglomerate said the acquisition was a part of a strategy to invest in new businesses that provide innovative solutions to evolving markets. It said ecommerce was a unique growth channel that complemented existing businesses, drawing on synergies with the rest of the Ayala group.
“This investment demonstrates how we, at Ayala, look at innovation and growth opportunities. We see the potential of ecommerce in the country, and believe that the Ayala group can benefi t and add tremendous value to Zalora. With resources in banking, real estate and telecommunications, the investment presents new opportunities for Ayala to generate synergies throughout the e-commerce value chain,” Ayala Corp. chairman and chief executive Jaime Augusto Zobel de Ayala said.
“With the rising demands of the communities that we serve, we believe new business models such as Zalora’s can provide alternative solutions and services that are complementary to our traditional brick and mortar operations. As a group, we have always strived to stay relevant and dynamic, continuously seeking new ways to evolve in line with reaching consumers, and delivering products and services according to their needs,” Zobel de Ayala said.
Ayala Land Inc., BPI Capital Corp, and Kickstart Ventures Inc. also acquired minority ownership stakes in BF-Jade. BPI Capital Corp. and Kickstart are wholly owned subsidiaries of BPI and Globe Telecom Inc. respectively. Ayala Land, the property arm of Ayala Corp., said in a separate disclosure to the stock exchange it would own a 1.91-percent interest in Zalora Philippines. The acquisition is subject to the fulfillment of certain conditions precedent, including obtaining the approval or deemed approval of the Philippine Competition Commission. Zalora Philippines was co-founded in 2012 as part of the global network of the Zalora Group, which is 100-percent owned by the Global Fashion Group, the world’s largest online fashion platform for emerging markets. “Through the partnership with Ayala Corp.― one of the country’s longest standing and well diversified business corporations―Zalora Philippines will now not only be able to benefit from the support and expertise of GFG and Zalora but also from the synergies and support of the Ayala companies. We are confident that together, we are in a unique position strengthen the leadership of Zalora Philippines, as we deliver the best online fashion shopping experience to Filipino consumers across the archipelago,” Global Fashion Group chief executive Romain Voog said.