Ayala Corp. has accelerated its accumulation of Ayala Land Inc. (ALI) shares, spending about P2.38 billion to acquire 141.55 million common shares through market purchases disclosed between July 16 and July 31, reinforcing its confidence in the property giant’s long-term prospects while taking advantage of what it believes is an undervalued share price.
The conglomerate’s latest disclosures showed it bought an additional 28.43 million ALI shares between July 29 and July 31 for about P480.4 million, following an earlier acquisition of 113.12 million shares worth P1.90 billion. The combined purchases were made at an average price of about P16.80 per share.
The acquisitions represent approximately 0.99 percent of Ayala Land’s 14.29 billion outstanding common shares.
Based on Ayala Corp.’s reported ownership of 7.657 billion ALI shares, or 53.58 percent, as of June 30, the latest purchases would raise its holdings to about 7.799 billion shares, equivalent to roughly 54.57 percent of the listed property developer.
Ayala Corp. announced on July 3 that it had earmarked P5 billion—including P2 billion from its capital expenditure budget—for additional ALI share purchases under its expanded P20-billion buyback program covering the company and its listed subsidiaries.
The conglomerate said the investment reflects its confidence in Ayala Land’s long-term value and growth prospects, while enabling it to increase its ownership at prevailing market prices. Share buybacks also enhance the parent’s economic interest in future earnings and dividends without requiring new capital to be raised by the subsidiary.
With cumulative purchases now totaling about P2.38 billion, Ayala Corp. has utilized nearly 48 percent of its P5-billion allocation, leaving roughly P2.62 billion available for further acquisitions.
While the buying spree lifts Ayala Corp.’s ownership by less than one percentage point, the sustained pace of acquisitions sends a clear signal that the parent believes Ayala Land’s market price remains below its intrinsic value, making the stock an attractive long-term investment.
