Mitsubishi Corp. sold P11.7 billion ($225 million) worth of shares in conglomerate Ayala Corp. as part of the Japanese group’s portfolio management and rebalancing of assets.
Mitsubishi unloaded 13 million common shares of Ayala at P900 apiece, a 7.3-percent discount to Tuesday’s closing price of P970.50.
The transaction, conducted through a series of block sales at the Philippine Stock Exchange, triggered a selldown of Ayala shares.
Share price of Ayala Corp. closed at P919 on Wednesday, down 5.3 percent from the previous day’s finish.
This marked the second time Mitsubishi trimmed its shares in Ayala Corp.
Mitsubishi also unloaded 8.5 million Ayala shares equivalent to a 1.36-percent stake in the conglomerate for nearly P8 billion in March 2018.
Ayala Corp., which has interests in banking, real estate, telecoms, power generation, water utility, infrastructure, and education, has been on expansion mode.
Ayala Corp.’s nine-month net income rose 3 percent to P23.9 billion, supported by strong earnings growth of its real estate, telecommunications, and power businesses.
The growth was tempered by the parent company’s higher interest expense resulting from increased borrowings to support Ayala’s capital expenditures and investments.
Equity earnings reached P29.3 billion, up 9 percent from a year ago. This was underpinned by robust contributions from Ayala Land Inc. and Globe Telecoms Inc., which expanded 17 percent and 16 percent, respectively.
The earnings were also boosted by AC Energy, whose contribution surged 40 percent in the first nine months of 2018.
The conglomerate’s balance sheet remained healthy with enough capacity to undertake investments and cover dividend and debt obligations.
Cash level at the parent level stood at at P16.7 billion while net debt reached P94.6 billion as of end-September 2018.