The Securities and Exchange Commission approved the P15.5-billion merger of the education units of the Yuchengco and Ayala groups.
Ayala Corp. said in a disclosure to the stock exchange the corporate regulator approved on April 24 the merger of unit AC Education Inc. and iPeople Inc. Documents showed that iPeople, a listed subsidiary of Yunchengco-led House of Investments, would be the surviving entity.
AC Education owns and manages Apec Schools, the University of Nueva Caceres and the National Teachers College, while iPeople owns Malayan Education System Inc. that runs Mapua University as well as Malayan Colleges Laguna, Malayan Colleges Mindanao and Malayan Science High School.
Upon SEC approval, iPeople will issue 295,329,976 common shares from its authorized and unissued capital stock in exchange for 1,993,477,338 AC Education shares.
The Philippine Competition Commission, the country’s anti-trust body, cleared the merger in December 2018, saying the merger would not likely result in the substantial lessening of competition in the sector.
Ayala Corp., AC Education, House of Investments and iPeople signed a definitive agreement in connection with the merger of their education units. After the merger, iPeople will be 51.3-percent owned by HI and 33.5-percent owned by Ayala Corp.
The merger will bring together the seven educational institutions of iPeople and AC Education to offer quality education to students across all income segments, with campuses in Metro Manila, Calabarzon, the Bicol region and Mindanao.
The merger will include iPeople and subsidiary Malayan Education System Inc. which is operating under the name of Mapua University and subsidiaries Malayan Colleges Laguna, the best board exam performing private higher education institution in Calabarzon, Malayan Colleges Mindanao in Davao City and Malayan Science High School in Manila.
It will also include AC Education and subsidiaries the University of Nueva Caceres, one of the oldest and largest universities in Bicol, National Teachers College, the country’s pioneer private teachers’ training tertiary education institution and Apec Schools, the largest chain of private stand-alone high schools in the country.
The merger will become effective on May 2. The share price of iPeople closed flat at P11.02 Thursday.