Conglomerate Ayala Corp. said it was chosen as the “preferred bidder” for Kia distributorship in the Philippines, a deal that could expand its automotive portfolio.
Ayala Corp. said in a disclosure to the stock exchange wholly-owned subsidiary AC Industrial Technology Holdings Inc., through one of its group companies, received a notice from Kia Motors Asia’s regional headquarters that it had considered the Ayala group as “the preferred bidder” to start negotiations for the Kia distributorship in the Philippines.
“However, no definitive terms have been reached and we will make the appropriate disclosure of any agreement reached,” Ayala Corp. said.
The deal, once finalized, will enable the conglomerate to expand its automotive distribution business which currently includes Honda, Isuzu, Volkswagen and KTM motorcycles.
Kia cars in the Philippines are currently assembled and distributed by Columbian Autocar Corp. of businessman Jose Alvarez.
Latest sales data from the Chamber of Automotive Manufacturers of the Philippines Inc. showed that Columbian Autocar sold 5,186 units in 2017, down 29 percent from 7,304 units sold in 2016. It accounted for 1.22 percent of the total vehicles sales in 2017.
Davao-based businessman Dennis Uy was also reportedly interested in acquiring Kia distributorship in the Philippines.
San Miguel Corp. acquired last year a 65-percent stake in Asian Car Makers, a company also owned by Alvarez and the distributor of European luxury car BMW in the Philippines.
Ayala Corp., through newly formed unit AC Industrials, pursues more investments as a part of its strategy to assemble a portfolio of businesses that develop, enable, manufacture and commercialize automotive and other industrial technologies.
It acquired a 94.9-percent stake in German automotive supplier MT Misslbeck Technologies GmbH in June.
AC Industrials forged a joint venture partnership in 2016 with European’s leading motorcycle producer KTM AG to manufacture motorcycles in the Philippines for export to China and Southeast Asian markets.