Ayala to consolidate mfg, vehicle distribution under AC Industrials

MANILA, Philippines -  A subsidiary of Ayala Corp. will transfer its 50.6 percent ownership in Integrated Micro-Electronics Inc. to AC Industrial Technology Holdings Inc., a move aimed at consolidating the group’s interests in manufacturing and automotive dealership under one company.

The transaction, which will be done through a special block sale of IMI shares, allows AC to execute on its vision to assemble a portfolio of businesses that own, develop and commercialize automotive and other industrial technologies across various platforms to capture opportunities in the domestic and global markets.

 AC industrials is one of the conglomerate’s emerging businesses rebranded under the AC portfolio, along with AC Energy, AC Infra, AC Education and AC Automotive.

The block sale needs the approval of the Philippine Stock Exchange and has been granted exemptive relief from the application of the mandatory tender offer rules by the Securities and Exchange Commission.

IMI is the 21st largest electronics manufacturing service provider and the sixth largest automotive electronic manufacturing services provider in the world based on revenues, with technological and management expertise in automotive, telecom and industrial electronics, among others.

 AC Industrials, meanwhile, holds Ayala’s interests in automotive distributorship which include a 13-percent stake in Honda Cars Philippines, a 15-percent stake in Isuzu Philippines Corp., a 100-percent stake in Honda Cars Makati Inc., a 100-percent stake each in Isuzu Automotive Dealers, Automobile Central Enterprise and Adventure Cycle Philippines Inc.

HCMI and IADI respectively own and operate 11 full-service Honda car dealerships and eight full-service Isuzu dealerships nationwide.

Aside from this, ACEI is the official Philippine importer and distributor of Volkswagen vehicles.

AC Industrials also manufactures KTM motorcycles and, through ACPI, is the official distributor of KTM motorcycles in the Philippines.

“Through its wider reach and industry coverage, AC Industrials seeks to play a bigger role in manufacturing and contribute to the country’s rise as a Southeast Asian (ASEAN) industrial hub, directly providing IMI a foothold in the industry,” Ayala said.

 Ayala Corp. is the country’s oldest conglomerate, with businesses in banking, telecommunications, property and retail, among others.