Ayala Corp., one of the country’s largest and oldest conglomerates, said it remains overweight in the Philippines in terms of investments while exploring opportunities in other Southeast Asian countries.
Ayala Corp. chairman and chief executive Jaime Augusto Zobel de Ayala said during the annual stockholders’ meeting the conglomerate was not rushing to invest outside the Philippines, because of the significant growth opportunities in the country especially in the power and infrastructure sectors.
“We have been in no rush in expanding the portfolio overseas only because we have been overweight in the Philippines and the results speak for themselves. It has been a great run for us over the past five years,” Zobel de Ayala said.
“But the management team understands that what is happening in Asean is of great interest and we do remain on the look out for opportunities,” he said.
The conglomerate allocated P185 billion in capital expenditures this year, primarily to finance the expansion of real estate and telecommunications businesses as well as energy and infrastructure projects.
“Ayala, now more than ever, is in a steeper growth trajectory. As this unprecedented growth in the economy continuous to present attractive opportunities, we continue to challenge ourselves to innovate ourselves as we seek to address new opportunities,” said Zobel de Ayala.
The conglomerate’s capital spending reached nearly P500 billion over the past five years.
The company’s net income is poised to hit P20 billion this year, a year ahead of the target.
Water unit Manila Water Co. Inc. has ventured in Vietnam while its property unit Ayala Land recently acquired a 9.16-percent interest in Malaysian property firm.
Meanwhile, the conglomerate is open to more joint venture partnerships as the projects being bid out by the government become larger.
“As we get into much larger big-ticket items, it makes sense for companies to come together. Increasingly we have seen ourselves working with a consortium,” Zobel de Ayala said.
Ayala Corp.’s property unit Ayala Land Inc. earlier teamed up with other property firms, SM Prime Holdings Inc., Megaworld Corp. and Aboitiz Equity Inc. in bidding for the P123-billion Laguna Lakeshore Expressway Dike project.
It also won the P65-billion redevelopment and extension of the LRT 1 project and the automated rail ticketing system in partnership with Metro Pacific Investments Corp.