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Ayala Corp. subsidiary AC Logistics Holdings Corp. and AIR21 Holdings sealed the transaction on August 30 with AIR21 issuing an exchangeable note to ACL while ACL subscribed to 2.54 million AHI primary shares
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The transaction completed the Ayala Group’s acquisition of 60% of AHI for P6.06 billion
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With AHI now under its wings, Ayala will have control of 8 logistics companies in AHI’s portfolio
Ayala Corporation subsidiary AC Logistics Holdings Corp completed on August 30 its P6.06 billion acquisition of logistics company AIR21 Holdings Inc. (AHI), founded by businessman and former Customs Commissioner Alberto Lina.
The deal, signed in November 2021, was sealed in a transaction in which Lina issued an exchangeable note to AC Logistics while the Ayala unit subscribed to 2.54 million primary shares in AHI.
With the completion of the transaction, AC Logistics now holds 60% of AHI. The exact number of AHI shares that ACL acquired was 2,539,581,600 with a total value of P6.06 billion.
Ayala Corp. said in a disclosure to the Philippine Stock Exchange that the transaction price per share was less than 10% of the conglomerate’s total equity. The payment was made upon financial close, Ayala told the PSE.
The acquisition of AHI, Ayala said, “provides it with a more robust capability to provide logistics services across the entire supply chain, including door-to-door express delivery, multiple types of warehouse operations, management, and digitization, international and domestic freight forwarding, and waste management services.”
AHI has controlling interests in eight operating companies: Airfreight 2100 Inc., Air 2100 Inc., U-Freight Philippines Inc., U-Ocean Inc., Cargohaus Inc., LGC Logistics Inc., Waste & Resources Management Inc., and Integrated Waste Management Inc.
These subsidiaries are in door-to-door express delivery; international and domestic freight forwarding; warehouse operations, management and digitization; and waste logistics management business.
The deal was consummated 16 months after gaining approval from Ayala Corp.’s board. In June, the Philippine Competition Commission gave the takeover the green light.
READ: Ayala’s logistics arm buys 60% of Air21 for P6B
AC’s logistics journey started in 2018 when it launched Entrego Fulfillment Solutions, Inc. Since then, it has expanded from last mile delivery to domestic freight forwarding, contract logistics, and warehouse operations.
The addition of AHI to the AC Logistics portfolio, together with Entrego, creates synergies that can potentially generate greater operational efficiency and more efficient asset utilization, AC noted.
It said the combination of both companies’ respective capabilities puts the Ayala Group in a better position to provide technology driven end-to-end logistics services that can help address some of the challenges related to pharma and healthcare aides access, food preservation, and proper waste management.
Aside from Ayala, Metro Pacific Investments Corp.’s logistics arm, Metropac Movers, Inc., in 2018 also acquired a 12% stake in AHI.
