Ayala Corp., the country’s oldest conglomerate owned by the Zobel de Ayala family, is expanding its presence in Southeast with a $237.5-million equity investment in two companies owned by Myanmar tycoon Serge Pun.
Ayala said in a disclosure to the stock exchange it would invest up to $237.5 million for a 20-percent stake in two holdings companies of the Yoma Group. These are Singapore-listed Yoma Strategic Holdings Ltd. and Myanmar-listed First Myanmar Investment Public Co. Ltd.
The deal is a milestone in Ayala’s history and the biggest investment by a Philippine conglomerate in Myanmar.
“Our partnership with the Yoma Group gives Ayala a unique opportunity to participate in Myanmar’s growth story. We could not imagine a better way to do this than with the Pun family, whose solid, decades-long reputation as a business house has cemented their expertise in multiple sectors such as real estate, banking, automotive, healthcare, power and tourism, among others,” said Ayala chairman and chief executive Jaime Augusto Zobel de Ayala.
“We have always believed that ASEAN has a massive potential to reap the benefits of Asia’s rise in the global economy. Ayala can definitely move closer to this aspiration by working with a respected and diversified conglomerate in the region,” he said.
The Yoma Group executive chairman Serge Pun said: “Ayala is one of the foremost conglomerates in the Philippines, a family business that has endured generations of change, while maintaining a stellar track record in many sectors across the economy. We have much to learn, and they have much to teach us. We look forward to leveraging their expertise and experience to strengthen our existing businesses, and to explore potential new opportunities in Myanmar,” said Pun.
The Ayala group said Myanmar is one of the fastest growing economies in the region with a GDP growth over six percent year-on-year for the last three years.
“We are confident that by leveraging our own capabilities and experiences over the last 185 years, Ayala’s partnership with the Yoma Group could certainly help improve the lives of people in Myanmar through purposeful business,” Ayala president and chief operating officer Fernando Zobel de Ayala said.
Ayala’s energy unit, AC Energy, together with YSH, announced in October plans to develop around 200 megawatts of renewable energy in Myanmar.
Apart from Myanmar, Ayala has also established its presence in Indonesia, Vietnam, China, Australia, Europe, the US and Mexico.
Ayala pursues international expansion in markets and sectors where it can bring its strengths and expertise.