Conglomerate Ayala Corp. is taking control of logistics provider Air21 Holdings Inc. owned by businessman Alberto Lina to strengthen its position in the fast growing logistics sector.
Ayala said in a disclosure to the stock exchange Friday wholly-owned unit AC Logistics Holdings Corp. has signed an agreement with the Lina group for the acquisition of a 60-percent interest in Air21.
Ayala president and chief executive Fernando Zobel de Ayala said the purchase would enable AC Logistics to establish an end-to-end logistics platform capable of serving the supply chain requirements of multiple industries in high-growth markets.
The AIR21 group is engaged in a broad range of supply chain services covering door-to-door express delivery, international and domestic freight forwarding, warehousing and waste logistics management.
“Ayala’s businesses have proven leadership in their respective industries. The management expertise from the Ayala group combined with our extensive experience in logistics will be transformative not just for our group but for the industry as well,” Air21 founder and chairman Alberto Lina said.
The Ayala Group in 2017 ventured into the logistics sector with the launch of Entrego Fulfillment Solutions Inc., which offers several logistics services, such as management of parcel, documents and bulk deliveries for business-to-business (B2B) and business-to-consumer (B2C) clients.
“The decision to enter the logistics sector was a deliberate move on our part. We have been looking at the ecosystem in the past, carefully studying the opportunities where we can invest and make a difference. The supply chain disruptions and lockdowns we faced in 2020 strengthened our conviction in investing in the logistics sector, which we started back in 2017,” said Rene Almendras, president of AC Logistics.
“More than ever, logistics is a critical component of trade, particularly as we recover from the effects of the pandemic. We are very excited to improve and redefine practices with the use of new technology and with the needs of Filipinos at the core of our aspirations,” he said.
Ayala will buy the 60 percent interest in Air21 through the acquisition of secondary shares and subscription to primary shares, subject to closing conditions.
Meanwhile, Ayala reported that net income in the first nine months of the year grew jumped 70 percent to ₱19.4 billion on improved performance of most of its business units. The strong performance was boosted by gains from the partial divestment of the group’s thermal assets and AC Health’s acquisition of Qualimed Health Network earlier in the year.
Ayala’s core net income In the third quarter rose 27 percent to ₱6 billion.