Ayala Logistics to acquire 60% stake in Air21 Group
Ayala Logistics Holdings Corp. (AC Logistics) is acquiring a 60% stake in Air 21 Holdings, Inc. (AHI), a company owned by former Customs chief Alberto D. Lina, for P6 billion.
Ayala Corp. told the stock exchange on Friday that its subsidiary signed the investment agreement for the 60% interest in AHI with Mr. Lina, the latter’s founder and chairman.
AC Logistics is a new subsidiary created by Ayala Corp. for its investments in the logistics sector.
“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 separate statement.
AC Logistics will subscribe to AHI’s primary shares and secondary shares, totaling over 2.6 billion shares.
Mr. Lina is set to consolidate his equity interest in Airfreight 2100, Inc., Air 2100, Inc., U-Freight Phils., Inc., U-Ocean, Inc., Cargohaus, Inc., LGC Logistics, Inc., Waste & Resources Management, Inc., and Integrated Waste Management, Inc. under AHI.
The eight companies under offer logistics services such as door-to-door service deliveries, international and domestic freight forwarding, and warehousing and waste logistics management.
“To achieve the financial close, there are conditions precedents that Mr. Lina will need to fulfill which includes the completion of the consolidation of Mr. Lina’s equity interest in the operating companies in AHI, completion of due diligence with results satisfactory to AC Logistics, and getting regulatory approvals,” AC said in its disclosure.
The Ayala-led logistics firm “aspires to become a world-class logistics player.”
“The partnership with AHI gives AC Logistics an end-to-end logistics platform that is capable of serving the diverse supply chain requirements of high-growth industries and complements Ayala’s initial foray in logistics through Entrego,” Ayala Corp. President and Chief Executive Officer Fernando Zobel de Ayala said in a statement.
For his part, Mr. Lina said the Air21 Group’s partnership with AC Logistics will be “transformative” for the industry.
“Ayala’s businesses have proven leadership in their respective industries. The management expertise from the Ayala group combined with our extensive experience in logistics will be transformative not just for our group, but for the industry as well,” Mr. Lina said. — Keren Concepcion G. Valmonte