Ayala group sets aside money for possible MandAs

Of the P26.4 billion available cash of the conglomerate, half of it, or P13.2 billion will be used for the purpose, Eric Francia, Ayala Corp. managing director for corporate strategy, told reporters. "Out of that amount, half of that will be readily deployable for acquisition and investments. We don't have a strict time-line, but if we find a good opportunity, then we will go for it," he said.

Known for its conservatism, Ayala had looked at "certain deals" in the past, but did not prosper, Francia said.

The conglomerate had wanted to penetrate the power sector, but showed no interest in coal-fired power plants, which the government had prioritized for sale to the private investor.

In contrast, other conglomerates like San Miguel Corp. (SMC) and the Philippine Long Distance Telephone Co. (PLDT) group have launched into mergers and acquisitions by diversifying into non-allied industries. SMC had ventured into power, infrastructure and telecom, while the PLDT group, including sister-firm Metro Pacific Investments Corp., made forays into infrastructure, utilities and mining.

"I know, we're usual suspects. We are casting our net wide in terms of looking for opportunities. We are very flexible in terms of things we are looking at," Francia said.

"We are always in business development mode, but there is always [an] active pipeline," he said.

Jaime Augusto Zobel de Ayala, the group's chairman, earlier said the company is still interested in the power sector, particularly in renewable energy.

Last week, the conglomerate reported that it's profit grew 13 percent to P1.7 billion in the third quarter this year from P1.5 billion in the same period last year.

Despite the growth in the third quarter, the company ended the first nine months of this year with a 26-percent decline in profit to P5.8 billion from P7.8 billion last year.

"With positive trends in the third quarter, we are optimistic about the continued growth trajectory of our businesses particularly as they tap new market segments and explore new geographies," Fernando Zobel de Ayala, Ayala Group president and chief operating officer had said.

The conglomerate also recently merged its contact center investment, eTelecare Global Solutions, with US based Stream Global Services Inc., creating one of the five largest global call center companies, with more than 50 sites in 22 countries.

Also, Integreon, wherein Ayala unit LiveIt Investments has a stake, acquired Grail Research, the captive strategic research and decision support unit of the Monitor Group.

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