AC Logistics Holdings, the new logistics arm of Ayala Corp., is acquiring 60% of Air21 Holdings for P6.06 billion
The acquisition will give AC Logistics an end-to-end logistics platform for serving the supply chain requirements of multiple industries in high-growth markets
Air21 is owned by the group of former Customs commissioner Alberto Lina
AC Logistics Holdings Corp., the new logistics arm of Ayala Corp. (AC), has signed an investment agreement to acquire 60% interest in Air21 Holdings Inc. (AHI) for P6.06 billion.
In a regulatory disclosure, AC said AC Logistics signed the investment agreement on November 11 to acquire a 60% interest in AHI through acquisition of secondary shares and subscription to primary shares.
The agreement was signed together with AHI; AHI owner Alberto D. Lina; Airfreight 2100, Inc. (Air21); Air 2100, Inc. (Air21 Subic); U-Freight Phils., Inc.; U-Ocean, Inc.; Cargohaus, Inc.; LGC Logistics, Inc.; Waste & Resources Management, Inc. (WARM); and Integrated Waste Management, Inc. (IWMI).
AC said the acquisition involves 2.602 billion shares, in which price per share is less than 10% of AC’s total equity. To close the transaction, Lina will need to fulfill conditions precedent, which include completing the consolidation of Lina’s equity interest in the operating companies in AHI, completing due diligence with results satisfactory to AC Logistics, and getting regulatory approvals.
Proceeds will then be released to Lina and subscription payments will be paid to AHI once these conditions are satisfactorily closed.
AHI is a holding company owned by Lina that will consolidate his equity interests in Air21, Air21 Subic, U-Freight, U-Ocean, Cargohaus, LGC, WARM and IWMI. After Lina formed Air21 in 1979, the company has since grown and is now under the Lina Group of Companies. The Lina group is engaged in various industries ranging from logistics, information technology, food, environment, waste management, business process outsource, travel, communications and media.
AC said that with the acquisition of AHI through the various subsidiaries of AHI, AC Logistics will have an end-to-end logistics platform capable of serving the supply chain requirements of multiple industries in high-growth markets.
“The supply chain disruptions and lockdowns we faced in 2020 strengthened our conviction in investing in the logistics sector, which we started back in 2017. More than ever, logistics is a critical component of trade, particularly as we recover from the effects of the pandemic,” Rene D. Almendras, president of AC Logistics, said in a statement.
To achieve the financial close, there are precedents that Air21’s Lina will need to fulfill including completion of the consolidation of his “equity interest in the AHI operating companies, completion of due diligence with results satisfactory to AC Logistics, and getting regulatory approvals,” AC said in its disclosure.
Air21 Group is engaged in a broad range of supply chain services covering, door-to-door express delivery, international and domestic freight forwarding, warehousing and waste logistics management.
AC Logistics serves as AC’s vehicle for investments in the logistics sector. Currently, AC’s logistics portfolio includes Entrego Fulfillment Solutions, Inc., a technology-driven end-to-end fulfillment solutions company, and AyalaLand Logistics Holdings Corp., which has principal business interests in holding companies, commercial leasing, industrial lot sales and development, and retail electricity supply.
Aside from AC, Metro Pacific Investments Corp.’s logistics arm, Metropac Movers, Inc., in 2018 also acquired a 12% stake in Air21.