Last week, Ayala Corporation (AC) shares have been one of the most actively traded stocks in the market. A total of 1.204 million shares equivalent to P1.089 billion were swapped in the trading floor in a span of 5 days, from April 29 to May 5. On Friday, the AC shared closed at P900, up by 0.6% if we compare to its P895 per share last April 26. So, what triggers the investors to snap up the shares of Ayala Corporation? Is it something worth investing for?
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The major reason why investors are buying Ayala Corp. stocks is because of its expansion plans. Right after disclosing the plan to expand, investors move to snap up the shares of the said company. It’s pretty obvious that the firm has been really hostile for the past few months while acquiring good companies like iPeople, Inc. and Phinma Energy. These acquisition are meant to increase its non-core assets. Apart from that, the firm also initiated a venture capital fund to invest in technology globally just recently. The recent level up of the credit rating of the country also triggers the investors to invest in Ayala Corp.
The trading of Ayala Corp. stocks seems like a value play for investors. Investors bought the stocks at a bargain considering that the firm has been moving sideways since Mitsubishi Corp. cut its shares from AC. The recent credit rating upgrade also serves a big role in this play. From BBB credit rating, Philippines has just received a BBB+ from S&P Global. The debt watcher is looking forward to the country’s economy for the next 6 months to two years as this is the current assessment of the PH economy. According to them, our economy is going to be stable for the next months and it is likely to stay at BBB+. This provides a greater outlook for Ayala Corp. and its investors.
The acquisition of Phinma Energy by Ayala Corp.’s energy unit, AC Energy, will be completed soon with its mandatory tender offer to the minor stakeholder of Phinma. The target date is within the second quarter of the year. The firm would subscribe to Phinma’s primary shares prices at about P2.632 billion, which will then equate to 68% total stake. Meanwhile, Ayala’s education unit, AC Education, Inc., have merged with iPeople last May 2. Ayala now owns 33.5% of iPeople while the House of Investment, Inc. (HI) owns 51.3%. iPeople has a total value of P15.5 billion at the time of merger.