Property developer Ayala Land Inc. (ALI) said Friday it raised P5.63 billion from the sale of shares in real estate investment trust firm AREIT Inc.
ALI, together with its wholly-owned subsidiaries AyalaLand Offices Inc. and Glensworth Development Inc., sold 181 million common shares in AREIT at P31.10 apiece, the property firm said in a stock exchange filing.
The offer price represented a 7.1-percent discount to AREIT’s closing price of P33.50 on Thursday.
The transaction, which initially involved 129 million common shares, was upsized by over 40 percent, anchored by high-quality long-only institutional investors.
Analysts said the share sale would ensure that AREIT remains compliant with the minimum public ownership requirement prior to the completion of the planned property-for-share swap transaction with ALI.
ALI is set to inject P28.6 billion worth of assets in AREIT this year. In exchange, ALI and its subsidiaries will receive 841,259 million AREIT primary common shares.
The deal is still subject for approval by the Securities and Exchange Commission (SEC).
“AREIT shall ensure that ALI will sell some of its AREIT shareholdings before the approval by the SEC of the transaction to ensure compliance with the minimum public ownership requirements imposed upon the company,” AREIT said in a recent disclosure.
The proceeds from the share sale will be settled on Jan. 30, 2024,
ALI and its subsidiaries will submit the required reinvestment plan to detail the use of proceeds obtained from the share sale transaction.
BPI Capital Corp., UBS AG Singapore Branch and CLSA Limited served as placement agents.
AREIT’s stock dropped 4.5 percent Friday to P32.