Market summary
The Philippine market recorded a mix of M&A and fundraising activities, demonstrating robust market activity across the energy, real estate, transportation, logistics, financial services.
The Transportation & Logistics sector saw robust fundraising activity, totaling c. USD731.8m in recent months. Singapore-based private equity firm Growtheum Capital Partners (GCP) announced a c. USD129.1m (PHP7b) investment in Mets Logistics, Inc., a cold storage logistics provider in the Philippines. This funding, along with an additional c. USD9.2m (PHP500m) from Mets’ founder shareholders, will support its nationwide expansion. Additionally, SMC Tollways Corp. (SMCTC) raised USD602.7m (PHP35m) through a fixed-rate bond issuance listed on the Philippine Dealing & Exchange (PDEx). The proceeds will refinance existing debt and expand the Skyway System, including Stages 1, 2, 3, and the Skyway Extension.
*Aggregate Deal Values = c. USD900.3m
This month’s top deals
Puregold is purchasing Puremart stores, including its leasehold improvements, furniture, fixtures, equipment, and merchandise inventory with up to PHP567.5 million book value from Tower 6789 Corp, which consists of at least 120 to 130 stores located across Metro Manila, CAMANAVA, Rizal, Bulacan, and South Luzon.
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Puregold acquires Puremart stores
Energy & Utilities
The Philippine Competition Commission (PCC) has approved the joint acquisition of power facilities and a liquefied natural gas (LNG) terminal by Meralco PowerGen Corp. (MGEN), Therma Natgas Power Inc. (Therma), and San Miguel Global Power Holdings Corp. (San Miguel Power). The deal, which is considered critical for strengthening the country’s energy supply, is subject to conditions aimed at ensuring fair competition and promoting transparency. The transaction involves MGEN and Therma, through their joint venture Chromite Gas Holdings Inc. (Chromite), acquiring a 67% equity interest in South Premiere Power Corp. (SPPC), Excellent Energy Resources Inc. (EERI), and Ilijan Primeline Industrial Estate Corp. In addition, MGEN and Therma, through Chromite, along with San Miguel Power, will jointly acquire 100% of Linseed Field Corp. (LFC), which operates the LNG terminal in Batangas City. As a result of these acquisitions, MGEN and Therma, through their 60/40 ownership of Chromite, will control 67% of SPPC, EERI, and Ilijan Primeline, while San Miguel Power retains a 33% stake in these three entities and gains a corresponding interest in LFC.
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PCC approves LNG deal subject to competition safeguards
ACEN Corp.’s joint venture, IBV ACEN Renewables Asia Pte. Ltd., has finalized the acquisition of a 49% stake in a 70-megawatt solar project in Bangladesh, the Ayala-led company announced. IBV ACEN has met all conditions under the sale and purchase agreements with Bangladesh holding firm Sonagazi Sun Holdings Pte. Ltd., ACEN said in a regulatory filing. IBV ACEN Renewables Asia is a joint venture between ACEN Renewables International Pte. Ltd., a unit of ACEN, and ib vogt (Singapore) Pte. Ltd.
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On November 20, 2024, MOHS Analytics acquired Remed Pharmaceuticals with over 20 brands in its portfolio and whose products cover four different pharmaceutical categories - Vitacare, Respicare, Pediacare and Gastrocare. The acquisitions are in line with MOHS’s 5-year roadmap to grow into one of the major fully integrated health and wellness companies in the Philippines.
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MOHS acquires major pharma company
Real Estate
The Securities and Exchange Commission (SEC) has approved City & Land Developers, Inc.’s plan to issue PHP400 million in debt, the property developer said in a stock exchange filing. The SEC approved the permit on Dec. 20, it said. The issuance consists of PHP400 million in short-term commercial paper to be issued at face value and traded over the counter.
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Listed property developer Ayala Land, Inc. (ALI) has raised PHP2.78 billion by selling 75 million shares of AREIT, Inc., its real estate investment trust, at PHP37 per share. The sale was made through a placement agreement with BPI Capital Corp., the investment banking arm of Bank of the Philippine Islands, and UBS AG Singapore Branch, a global financial services company.
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Listed property developer Ayala Land, Inc. (ALI) has raised PHP2.78 billion by selling 75 million shares of AREIT, Inc., its real estate investment trust, at PHP37 per share. The sale was made through a placement agreement with BPI Capital Corp., the investment banking arm of Bank of the Philippine Islands, and UBS AG Singapore Branch, a global financial services company.
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Transportation and Logistics
Singapore-based private equity firm Growtheum Capital Partners (GCP) will invest PHP7 billion in Mets Logistics, Inc. to help advance its expansion in the cold storage logistics sector in the Philippines. Established in 2010, the Philippine-based cold chain solutions provider operates cold storage facilities nationwide with over 100,000 total pallet positions. GCP will invest PHP7 billion in Mets, while another PHP500 million from Mets’ founder shareholders will also be invested in the company to fund its expansion plans.
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Mets Logistics eyes expansion with PHP7 billion from Growtheum Capital
SMC Tollways Corp. (SMCTC) listed its P3HP5 billion fixed-rate bond issuance at the Philippine Dealing & Exchange (PDEx) as part of the company’s funding initiatives. The bond offer consisted of PHP30 billion with an oversubscription option of PHP5 billion, SMCTC said in an e-mailed statement. It was given a “PRS Aaa” with a stable outlook credit rating by the Philippine Rating Services Corp. Proceeds from the bond issuance will be earmarked to refinance existing debt and support the Skyway System’s expansion, which consists of Skyway Stage 1, Skyway Stage 2, Skyway Stage 3, and the Skyway Extension.
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Financial services
Italian insurance firm Generali will sell its entire Philippine business to Insular Life Assurance Co. Ltd. to focus on its core markets. In a statement posted on its website, Generali said the sale of 100 percent of its stake in Generali Life Assurance Philippines Inc. will be finalized in the first half of 2025.
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Manila Electric Co. (Meralco) said that it had completed the acquisition of 28,053 common shares of CIS Bayad Center, Inc. (CBCI) from Japanese firm Densan System Co., Ltd. (Densan) for PHP241.5 million. The transaction gave Meralco a 5-percent stake along with units Customer Information Solutions Inc., which owns 85 percent), and Kayana Solutions, Inc. that has 10 percent.
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The Philippine Stock Exchange, Inc. (PSE) is set to add 61.92 percent to its existing 20.98 percent stake in the Philippine Dealing System Holdings Corporation (PDS) after signing agreements with PDS shareholders, December 26, 2024. At an acquisition price of PHP600.00 per share, PSE will be purchasing a total of 3.87 million PDS shares for PHP2.32 billion. The transaction cost was based on the PHP3.75 billion enterprise value of PDS.
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Technology
ACMobility, the mobility provider of the Ayala Group, has acquired electric vehicle (EV) charging network Evro, which seeks to consolidate the country’s operators to make them more accessible and convenient to local EV users. Evro, developed by Globe Telecom Inc.’s 917 Ventures, is an e-mobility service provider (eMSP) that offers real-time information on charging station locations, availability, and functionality, with a mobile application that allows EV users to locate, reserve, and manage charging stations.
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Ayala’s ACMobility acquires electric vehicle charging network Evro
Others
Asiabest Group International Inc. said that major stockholder Tiger Resort Asia Ltd. had sold its entire 66.67-percent stake in the company to a consortium led by PremiumLands Corp. for an undisclosed amount. Tiger Resort Asia, which controls the operator of integrated resort Okada Manila, acquired Asiabest in 2019 as a potential backdoor listing vehicle. PremiumLands, led by businessman and engineer Francis Lloyd Chua, is a real estate company whose portfolio includes The Mondrian and PMI Tower in Makati City and Market Mall in Ormoc City. It is also planning to develop affordable housing units under its Kabalayan project.
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Tech provider EasyCall Communications Philippines Inc. has disposed of its minority stake in a business process outsourcing (BPO) to raise PHP45 million for its future expansion. In a disclosure to the Philippine Stock Exchange, EasyCall said it sold all its shares in ePerformax International Inc. to affiliate company TDG Ventures Inc. (TVI) in line with its expansion strategy. EasyCall said it has signed a share sale agreement with TVI for the sale of its 3.8 percent stake in ePerformax, earning PHP44.93 million from the transaction.
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Tech provider EasyCall Communications Philippines Inc. has disposed of its minority stake in a business process outsourcing (BPO) to raise PHP45 million for its future expansion. In a disclosure to the Philippine Stock Exchange, EasyCall said it sold all its shares in ePerformax International Inc. to affiliate company TDG Ventures Inc. (TVI) in line with its expansion strategy. EasyCall said it has signed a share sale agreement with TVI for the sale of its 3.8 percent stake in ePerformax, earning PHP44.93 million from the transaction.
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Listed conglomerate Ayala Corp. has secured a social loan worth EUR50 million (PHP3.1 billion) from European bank ING Group to support its subsidiary Ayala Healthcare Holdings, Inc.’s (AC Health) portfolio growth. The EUR50-million social loan is the first Euro-denominated social loan that ING has structured for a Philippine conglomerate.
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Ayala Corp. secures EUR50 million from European lender
Phinma Education Holdings Inc. is expanding its network with the acquisition of St. Jude College (SJC) Dasmariñas, Cavite for PHP432 million. SJC Dasmariñas, Cavite is Phinma Education’s 10th school in the Philippines and the 12th in its regional network. The acquisition adds 3,000 students to Phinma Education’s network, beefing up the company’s total network to 167,000 students.
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Conglomerate Ayala Corp. is increasing its stake in listed education firm iPeople Inc. by acquiring shares worth PHP351 million from A. Soriano Corp. (Anscor). iPeople is a holding company under House of Investments Inc. of the Yuchengco Group of Companies and Ayala Corp., with investments in the education sector. The acquisition of 29.239 million shares, equivalent to 2.8 percent of iPeople’s outstanding common shares, boosted Ayala’s stake in the company to 36.3 percent. Anscor’s stake in iPeople went down to 6.13 percent. The deal is subject to the Philippine Competition Commission’s approval.
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Note: Deal values only include disclosed completed deals with amounts restricted to local scene i.e. amounts related to the Philippine entity and/or business. Rumored, announced, or planned deals not included. Cross-posted deals are also adjusted to avoid double count.
*USD 1.00 = PHP58.1 as of 31/12/2024
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