Conglomerate Ayala Corp. is consolidating its energy, water and transport and logistics businesses under AC Energy Inc. to create a sizeable and agile platform that will boost its foothold in the physical infrastructure space.
Ayala Corp. said Monday in a disclosure to the stock exchange wholly-owned AC Energy Inc. would be renamed AC Energy and Infrastructure Corp. to house listed companies AC Energy Philippines Inc. and Manila Water Company Inc. and unlisted unit AC Infrastructure Holdings Corp.
“We believe that consolidating our various infrastructure interests creates a formidable platform with a strong balance sheet and allows Ayala to participate in the many opportunities in infrastructure development in a more significant way,” Ayala chairman and chief executive Jaime Augusto Zobel de Ayala said.
“The energy and infrastructure platform emerges as one of the major pillars of Ayala, along with real estate, banking, and telecommunications,” he said.
Ayala Corp. president Fernando Zobel de Ayala said the consolidation could generate a host of opportunities for various infrastructure businesses. He said the group would continue the rapid expansion of AC Energy in the renewables space and scale up investments in transport and logistics.
It will also continue to invest significantly in the water sector to ensure long term water sustainability and reliability. Ayala has a well-diversified infrastructure portfolio.
Ayala has one of the fastest growing regional energy platforms with nearly 2000 megawatts of capacity in renewable and conventional power.
AC Infra, meanwhile, has investments in mass transportation, mobility and logistics.
The group recently formed a partnership with ports tycoon Enrique Razon Jr. as to be strategic investor in Manila Water. The transaction will bring P10.7 billion in fresh funds for Manila Water, which will support its capital spending program to improve the water and wastewater distribution system in Metro Manila’s east zone concession.
Aside from Metro Manila East Zone concession, Manila Water also operates and develops various water, wastewater and other related assets in the Southeast Asian region including Vietnam, Thailand and Indonesia.
It is constantly on the lookout for opportunities in the region.
Share price of Ayala Corp. rose 1.5 percent Monday to P606.