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Showing posts with label Ayala. Show all posts
Showing posts with label Ayala. Show all posts

Thursday, April 25, 2013

Stock News 2013: Ayala BPO unit buys UK-based LBM

English: Ayala Avenue in Makati City, Metro Ma...
English: Ayala Avenue in Makati City, Metro Manila, Philippines (Photo credit: Wikipedia)

The Ayala group’s business process outsourcing (BPO) unit has acquired UK-based LBM Holdings Ltd., allowing the group to make further inroads into the United Kingdom, the world’s second-largest English language market.

In a statement on Monday, Ayala Corp. announced that the acquisition was made by Stream Global Services Inc., an investee company of the conglomerate’s BPO investment arm, LiveIT Investments Ltd.

Stream pioneered the call center industry in the country when it took the first calls from the US market in mid-2000, the statement said.

LBM is a premier demand and lead generation solutions provider that employs about 2,500 people across six locations in the UK and generates approximately £60 million in annual revenues.

Its clients are in the telecommunications, financial services, utilities, automotive and retail industries.

“We are very pleased with Stream’s entry into the UK market, its strong financial results globally, its continued growth in the Philippines, and its recognition by the industry as an employer of choice,” said Fred Ayala, LiveIt’s CEO and Stream’s vice chairman.

The Ayala group sees LBM enabling Stream to better penetrate the UK as well as strengthen its ability to help customers grow their sales through LBM’s revenue generation service offerings.

“This transaction is about delivering greater value to our clients and long-term growth for our company,” said Stream chairperson and chief executive officer Kathy Marinello. “LBM has proven experience in creating highly precise target lists of people who will be more inclined to buy products and services, which will further enhance our StreamSELLER offering.”

“StreamSELLER focuses on everything involved with the sales process, from recruiting, hiring and training the right people to the consistent use of proven sales behaviors that close more sales with greater predictability. LBM’s people, expertise and capabilities, combined with Stream’s financial strength, global presence, and sales and service offerings, will establish a broader portfolio of high-value service offerings for our clients,” Marinello said.

Stream is a leading customer relationship management BPO company with over 39,000 employees supporting 35 languages across 56 service centers in 23 countries. The company booked revenues of $860 million in 2012 and grew its adjusted cash flow by 14 percent to $101 million.

In the fourth quarter of 2012, revenue was up by 7 percent year on year to $236 million. Adjusted cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) stood at $34 million, up by 10 percent and representing the 8th straight quarter of year over year growth in adjusted Ebitda. Net income for the fourth quarter of 2012 was $4 million.

The Ayala statement noted that Stream had also achieved “strong momentum” in the Philippines where over the last three years it has grown its headcount to more than 14,000. In recent months, Stream opened three new sites in Pasay, Makati and Cebu.


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Sunday, April 21, 2013

Stock News 2013: Ayala Land sets P15-B borrowings in H2

Land Title (Philippines)
Land Title (Philippines) (Photo credit: Wikipedia)

Property giant Ayala Land Inc. (ALI) is tapping the debt market in the second half to borrow P15 billion as it takes advantage of the prevailing low interest rate environment.

The fundraising program will complete the P65.5-billion capital requirements of the country’s most valuable property firm for 2013, an executive said.

“We still have some borrowings that we plan for the rest of the year,” Jaime E. Ysmael, ALI senior vice-president chief finance officer told The STAR.

“ALI itself will probably need around P15 billion and the subsidiaries will have their own borrowing program,” Ysmael said.

The property firm allotted P65.5 billion in capital expenditures this year as it plans to launch 69 new projects worth P129 billion to ensure continuous growth in the coming years.

Ysmael said ALI’s return to the debt market will be in the second half “because we have enough resources right now coming off from the equity placement,” Ysmael said.

“We are looking at seven and 10 years of maturity or maybe longer to match the development cycle,” Ysmael said.

In an overnight equity placement in March, ALI generated P12.2 billion in fresh funding as it sold 399.528 million shares at P30.50 a piece, way above the initial target of 320 million shares amid high demand.

In its capital spending, ALI planned to secure P12 billion from equity, P20 to P25 billion from debts and the remaining requirement from internally-generated cash, Ysmael said.

Philippine companies have been tapping funds from different channels like bonds and banks amid low interest rates and high liquidity. Last week, conglomerate SM Investments Corp. announced its plan to raise P25 billion through loans and bonds.

“We intend to lock in on good rates. We believe the rates will still remain low, supportive of the more aggressive investments,” Ysmael said.

However, ALI is careful not to let its annual maturing debts reach more than P10 billion as part of its debt refinancing and payment management, Ysmael said.

In March, the policymaking Monetary Board of the Bangko Sentral ng Pilipinas kept interest rates at a record low of 3.5 percent for overnight borrowing and 5.5 percent for overnight lending.

It also cut the interest it pays on funds parked at its special deposit accounts (SDA) in a bid to push out idle funds to help fund economic activity and boost growth amid a benign inflation environment.

The real estate arm of the Ayala conglomerate is set to continue this year the trend of double-digit growth in revenues and profits.

Earnings of ALI surged 27 percent to P9.04 billion last year from P7.14 billion in the previous year as revenues from its residential, hotel, office and commercial projects jumped 23 percent to P54.52 billion.


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Wednesday, April 17, 2013

Stock News 2013: Ayala to bid for more PPP projects

Ayala Mall
Ayala Mall (Photo credit: cebuparadiseisland_com)

Ayala Corp. is keen on participating in the bidding for a number of upcoming infrastructure projects to be auctioned by the government under the public-private partnership (PPP) framework.

Eric Francia, managing director at Ayala, said the conglomerate and its partners were preparing to bid for the Cavite-Laguna (Cala) Expressway project, the Light Railway Transit 1 (Baclaran to Cavite) extension and the Mactan-Cebu International Airport project. “We will be interested to participate in LRT-2 (extension from Santolan to Antipolo) as and when it gets bid out,” Francia said in an interview on Friday.

On toll roads, the group did not participate in the Ninoy Aquino International Airport (Naia) expressway project. However, Ayala plans to bid for the Cala, a four-lane, 47.02-kilometer at-grade tollroad that will connect the Manila-Cavite Expressway (Cavitex) and the South Luzon Expressway (SLEx) through the Cavite and Laguna provinces.

“We are definitely interested in Cala,” Francia said. “I think it is obvious why Cala is strategic to the Ayala group—it traverses along landbanks of Ayala Land, the largest of which is Nuvali, which is where the road terminates in the Laguna side.”

The estimated project cost is $1.01 billion, of which $504.83 million is the private sector component, based on the PPP website.

For LRT-1, the Ayala group has teamed up with Metro Pacific Investments, Macquarie and foreign group RATF Development SA, which operates the Paris Metro.

The project involves the construction spanning 11.7 kilometers from the end of LRT Line 1 at the Baclaran Terminal to the Niyog Station in Bacoor, Cavite, of which 10.5 km will be elevated and 1.2 km will be at-grade. The whole stretch of the integrated LRT 1 with a total length of 32.4 km will be operated and maintained by the private proponent. Based on the PPP website, project cost is estimated at $1.25 billion.

Asked whether it will be same consortium to bid for LRT 2, he said: “For sure Metro Pacific (will be part) as we have a pan-Manila cooperation but other members have yet to be determined.”

The LRT 2 project seeks to engage the private sector to operate and maintain the existing 13.8 km line 2, which runs from the Recto Station in Manila to the Santolan Station in Pasig City, passing through Magsaysay Boulevard and Marcos Highway. The proposed 4-km extension will be from Santolan to Masinag, Antipolo.

The Ayala group has also teamed up with the Aboitiz group and American airport operator ADC&Has to vie for the P17.5-billion Mactan-Cebu International Airport (MCIA) project.


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Thursday, February 7, 2013

Stock News 2013: High cost of modernization takes toll on Globe income

The old Globe corporate logo.
The old Globe corporate logo. (Photo credit: Wikipedia)

One step back, two steps forward. This was how Globe Telecom Inc. characterized its latest financial performance after it reported a 30-percent decline in its net earnings last year—despite having booked higher sales—as it accelerated spending for its ongoing network modernization program.

In a press briefing, officials of the Ayala-controlled telecommunications firm said that its net income for 2012 declined to P6.85 billion from the previous year’s P9.83 billion. The drop came despite a 6-percent increase in Globe’s revenues to P82.7 billion at the end of 2012 from P77.7 billion in the previous year.

Amid complaints being received by the firm from subscribers as it upgrades its long-neglected network, Globe president and CEO Ernest Cu said the company was “encouraged by the continued growth and resilience” of its mobile and broadband businesses “that allowed us to reach record peaks in revenues quarter after quarter despite intense competition” and the ongoing network and IT modernization.

“As we anticipate a more challenging year ahead, given the increasingly competitive environment, we are hopeful that the gains we have made in terms of brand building and differentiation through customer experience will tide us through this most critical period as we complete our network and IT modernization program and undertake the related transition efforts,” he said.

The impact of the modernization-related spending was felt most acutely in the final quarter of the year when its quarterly net income dropped to only P49 million from P1.84 billion in the same quarter of 2011.

The sharp decline was due to the accelerated depreciation costs associated with retiring old network equipment as well as to higher subsidies the company had to pay for the large demand for new iPhone 5 units acquired by subscribers.

On Wednesday, Globe officials also said that the company would soon begin talks with stakeholders of Lopez-owned Bayan Telecommunications Inc. to discuss the firm’s eventual exit from its ongoing rehabilitation program.

Globe recently acquired close to 100 percent of the liabilities of the debt-saddled company in a deal that also allowed the Ayala-led firm to make use of Bayan’s valuable 3G frequency.

Cu said that a future merger with Bayan was possible if such a plan would be accepted by all stakeholders involved. He stressed, however, that any prospective union between Globe and Bayan would not face the same regulatory roadblock experienced by rival PLDT and Digital Telecommunications Inc. two years ago since a merged Globe-Bayan entity would be far from the size that a PLDT-Digitel union would have created in terms of cellular frequencies controlled by a single entity.

During Wednesday’s briefing, Globe officials noted that the company’s broadband and fixed line data segments also posted significant gains on account of the rising demand for data and Internet connectivity.

“Full year broadband revenues were up 16 percent to P8.7 billion as the year marked another milestone for the business with the commercial launch of its broadband LTE service that provided subscribers with alternative tools to improve their overall Internet experience,” Globe said.

http://business.inquirer.net/106337/high-cost-of-modernization-takes-toll-on-globe-income

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Sunday, January 27, 2013

Stock News 2013: Ayala, Aboitiz form venture with American airport giant

The departure hall of Mactan Cebu Internationa...
The departure hall of Mactan Cebu International Airport on Mactan Island. (Photo credit: Wikipedia)

THE AYALA and Aboitiz groups have teamed up with US-based global airport operator ADC & HAS Airports Corp. to boost their bid for the P10-billion Mactan-Cebu International Airport terminal rehabilitation project under the government’s Public Private Partnership (PPP) program.

Ayala Corp. and Aboitiz Equity Ventures signed a memorandum of understanding with ADC to form a consortium that would participate in the planned public bidding of the Mactan airport modernization program.

ADC is a global airport operator with a track record of successful investment, development and operation of airports around the world. It operates airports serving the capital cities of Quito, Ecuador, and San Jose, Costa Rica, with an annual capacity of more than five million passengers and 3.6 million passengers, respectively. It also operates airports in the growing tourist destinations of Liberia, Costa Rica, and the Chungcheong northern province in South Korea.

Based in Houston, ADC combines the operational strength and technical resources of the Houston Airport System (HAS) and the airport privatization and development experience of Airport Development Corp. (ADC). HAS operates three airports in the United States that handle a combined capacity of nearly 50 million passengers annually, making it North America’s fourth-largest airport operator.

“By partnering with ADC&HAS, we are bringing on board one of the most dynamic developers and operators of airports in the world today,” said AEV president Erramon Aboitiz.

“ADC&HAS has been at the forefront of airport and commercial development for over 40 years, spearheading landmark airport privatizations in Canada, Hungary, Ecuador, Costa Rica and just recently in Korea,” Aboitiz said. “Coupled with the technical resources from HAS, the world’s sixth-largest airport system, we’re confident that our alliance with ADC&HAS will allow us to develop a world-class airport facility in Mactan that all Filipinos will be proud of.”

AEV teamed up with Ayala on the project through newly acquired property unit Aboitiz Land.

http://business.inquirer.net/97153/ayala-aboitiz-form-venture-with-american-airport-giant

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Monday, November 19, 2012

Stock News 2012: Ayala, Rustan’s plan dep’t store chain

Shangri-La Plaza
Shangri-La Plaza (Photo credit: Brian Sahagun)

Ayala Land Inc. will soon debut into the department store retailing format in partnership with the Rustan’s group by investing in the anchor tenant of a new Ayala shopping center rising in Fairview, Quezon City.

This will implement an earlier announced equal joint venture with the Tantoco family’s Specialty Investments Inc. (SII) to “pursue opportunities in the Philippine retail sector.”

ALI and Rustan’s are likewise investing in the 24-hour convenience store business under Japanese retailing chain FamilyMart, the world’s second-largest convenience store operator.

Although a late entrant in the high-volume but low-margin retailing business in department store and convenience store businesses, ALI is confident that having Rustan’s as a partner would create a “formidable” alliance that could effectively compete in this segment, said ALI chief finance officer Jaime Ysmael.

In a talk with reporters at the sidelines of the Securities and Exchange Commission hearing on foreign capital computation, Ysmael said ALI was now developing a new mall—Fairview Terraces—whose anchor tenant would be a department store co-owned by the Ayala-Rustan’s partnership. Typically, he said the anchor tenants in Ayala’s shopping centers would occupy about 10,000 square meters of retail space like Landmark (in Glorietta and Trinoma) or Gaisano (in Market!Market!).

“We haven’t come up with the name yet,’ Ysmael said, when asked what would be the branding for the upcoming Ayala-Rustan’s department stores. “Close to opening, that should be available,” he said. Parkview Terraces is expected to open by the end of next year.

This would not mean that ALI would no longer provide retail space to other department store operators in other upcoming malls, Ysmael said. “We will still have that kind of relationship with existing partners. It’s just that we want to put up our own so that we can move faster than that we’ll be able to do if we don’t have our own department stores. But those (other) stores will continue. They are longtime partners,” he said.

Ysmael said Rustan’s, apart from being the dominant retailer for the high-end segment, had a vast experience in the broader consumer market through its Shopwise grocery chain. “We’re confident that the partnership will be able to compete,” he said.

For the convenience store business, which is in partnership with FamilyMart and Japanese conglomerate Itochu, Ysmael said this should also be a “formidable” retail format.

The partnership is investing about P200 million to jumpstart the business. While the initial target is to set up 30 stores in the first year of operations, Ysmael said it should roll out “a couple of hundred stores to be able to make a difference.” As Ayala has hundreds of property developments across the country, Ysmael said the rollout should not be a problem.

“We’re positioning also in other areas, not just in our developments, but the priority is to locate in our developments,” he said.

http://business.inquirer.net/92476/ayala-rustans-plan-dept-store-chain

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Monday, July 16, 2012

Stock News 2012: Manila Water to acquire 49% of Vietnam firm

Manila Water CompanyManila Water Company (Photo credit: Wikipedia)
East Zone water concessionaire Manila Water Co. Inc expects to complete the acquisition of 49 percent of Vietnamese firm Kenh Dong Water Supply Joint Stock Co within the quarter.

“The one pending for financial closing is the Kenh Dong Water treatment plant. But we expect it in the next few weeks, very close to closing (of the second quarter),” said Manila Water East Zone Business Operations director Ferdinand Dela Cruz.

Vietnamese infrastructure developer Ho Chi Minh City Investment Joint Stock Co. (CII) has awarded Manila Water the right to purchase 10 percent of its stock and 49-percent interest in Kenh Dong Water Supply Joint Stock Co.

Dela Cruz said Manila Water invested $50 million in Kenh Dong.

Manila Water’s parent firm, Ayala Corp. is optimistic of Vietnam’s positive economic outlook. High demand for infrastructure in the region is expected to give the conglomerate access to investment opportunities in the sector.

CII is a leading Vietnamese infrastructure company withinterests in with water treatment plants and toll roads in Ho Chi Minh. It also holds a stake in Thu Duc Water BOO Corp., a water treatment company now 49 percent owned by Manila Water.

Manila Water acquired a 49-percent interest in Thu Duc Water in December last year.

The billed water volume for the Thu Duc water treatment plant had already been folded into the first quarter income of the company.

Manila Water acquired a 49-percent interest in Thu Duc Water in December last year.

Manila Water saw its net income rise 64 percent in the first quarter from a year ago amid higher revenues from its businesses.

The firm’s financial statement disclosed to the local bourse showed that its unaudited net income climbed to P1.34 billion in the first quarter of this year from P816 million in the same period last year.

The Ayala-led firm’s revenues went up 28 percent to P3.42 billion for the period from the previous year’s P2.67 billion.


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Sunday, April 29, 2012

Stock News 2012: Ayala Corp kicks off P10-B bond offer

The bonds due 2027 bear an interest rate of 6.875 percent per annum.

Tapped as underwriters for the bond issue are BPI Capital Corp., BDO Capital & Investment Corp., First Metro Investment Corp., Hongkong and Shanghai Banking Corp., ING Bank Manila, RCBC Capital Corp., SB Capital Investment Corp. and Standard Chartered Bank.

Ayala is raising funds to support its expansion both through organic growth of its existing business lines as well as value-accretive acquisitions. This includes opportunities presented by various domestic infrastructure projects.

“We always ensure that we maintain a highly flexible funding position at the holding company level that will allow us to invest in sizable projects without impeding other value-enhancing initiatives we are currently undertaking,” Ayala treasurer Ramon Opulencia said.

“The low-interest rate environment and the robust liquidity in the system provide an ideal environment for us to be able to stretch our tenors and match the anticipated long gestation period of the investments that Ayala envisions,” he added.

Ayala earlier won the bid for the Daang Hari connector road project under the government’s Public-Private Partnership (PPP) program.

It also recently forged an agreement with Metro Pacific to jointly pursue and develop light rail transit projects in Metro Manila.

Part of the proceeds of the bond offer will also be used to prepay the company’s debt.

Ayala has been a consistent and innovative issuer in the domestic capital market over the past few years. It has pioneered investment products in the local market that provided the broader investing public, particularly retail investors, with alternative investment choices.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801615

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Saturday, April 28, 2012

Stock News 2012: Ayala to invest in Vietnamese firms

Tâm Đức hospital, 7th district, Ho Chi Minh City.Tâm Đức hospital, 7th district, Ho Chi Minh City. (Photo credit: Wikipedia)
Reflecting its optimism on Vietnam’s economic outlook, conglomerate Ayala Corp. is investing in two infrastructure companies based in Ho Chi Minh, the largest city in Vietnam.

In a disclosure to the Philippine Stock Exchange (PSE), Ayala said it is acquiring a 10-percent stake in leading infrastructure firm Ho Chi Minh City Infrastructure Investment Joint Stock Co. (CII) as well as a 49-percent stake in Kenh Dong Water Supply Joint Stock Co. through subsidiary Manila Water Corp.

The move is in line with the group’s strategy to shore up its presence in Vietnam, which is expected to emerge as a major manufacturing hub in the ASEAN region due to improving business climate, increased trade and investment cooperation and low labor cost.

CII holds business interests in water treatment plants and toll roads serving the city and surrounding areas.

It also holds a stake in Thu Duc Water BOO Corp., a water treatment company which is now 49-percent-owned by Manila Water Corp.

In addition to water infrastructure, CII holds toll road concession agreements such as the 15.7-kilometer expansion of the existing Ha Noi Highway which connects the northeastern part of Ho Chi Minh City to Bien Hoa, an industrial center located in the southern part of Vietnam.

CII is looking to invest further in new water infrastructure initiatives and is eyeing expansion into other types of infrastructure projects such as public transportation terminals.

Kenh Dong, on the other hand, has a water treatment plant, with a projected capacity of 200 million liters a day, which is expected to start commercial operations by the second half of the year.

The facility is expected to benefit the suburban districts of District 12, Tan Phu and Binh Tan, where water coverage is very low, averaging at about 50 percent of the population.

At present, Kenh Dong has a bulk water supply contract with Saigon Water Corp. for a guaranteed volume of 150 million liters per day.

Saigon is the state-owned enterprise managing the water supply system in Ho Chi Minh City.

Ayala president and Manila Water chairman Fernando Zobel de Ayala said: “This investment primarily supports and complements the expansion of Manila Water as it gradually builds its presence in Vietnam. At the same time, this also provides strategic access to other related infrastructure opportunities which may be of value to the group.”

“We recognize Vietnam is a high growth area in the region and there is strong demand for infrastructure investments. This may potentially present opportunities for the Ayala group to establish presence across several sectors,” Zobel de Ayala said.

The Ayala Group is making a strong push in the infrastructure space to diversify revenue streams to spur faster growth.

http://www.philstar.com/Article.aspx?articleId=801321&publicationSubCategoryId=66

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