ALI, CHI merge

Ayala Land Inc. and its subsidiary Cebu Holdings Inc. (CHI) are merging in a move to consolidate ALI’s Cebu portfolio into one listed company.

“The merger is an internal restructuring, as well as a consolidation of ALI’s Cebu portfolio under one listed entity. The merger is expected to result in operational synergies, efficient funds management and simplified reporting to government agencies,” CHI said.

In a disclosure yesterday, CHI said its board of directors approved the merger with ALI and some of CHI’s subsidiaries and affiliates such as Asian I-Office Properties Inc., Arca South Commercial Ventures Corp. and Central Block Developers Inc.

ALI will be the surviving entity under the plan. The merger will be submitted for the approval of the company’s stockholders on April 14, 2021.

CHI is a 71.1 percent subsidiary of ALI while AiO and ASCVC are wholly owned subsidiaries of the company and ALI, respectively, while CBDI is 55 percent owned by CHI and 45 percent owned by ALI.

ALI is the real estate arm of the Ayala Group, the country’s oldest conglomerate. It is engaged in the planning and development of large scale, integrated estates, sale of residential lots and buildings, office buildings and commercial and industrial lots, leasing of commercial and office spaces and the development, operation and management of hotels and resorts.

Among the company’s subsidiaries are Alveo Land Corp., Avida Land Corp., Ayala Property Management Corp., Makati Development Corp., North Triangle Depot Commercial Corp., Laguna Technopark Inc. and Ten Knots Philippines Inc.

CHI owns and manages the Cebu Business Park, a 50-hectare business and commercial subdivision in Cebu City. At present, there are currently 44 buildings in Cebu Business Park, with nine ongoing constructions.