AYALA Land Inc. (ALI) announced it has launched a mandatory takeover offer to buy all of the shares in MCT Berhad that the property developer still does not own following the acquisition of a controlling stake in the Malaysian firm.
“The takeover offer is made in connection to the acquisition of additional shares in MCT, which increased ALI’s shareholding in MCT to 50.19 percent,” ALI said in its disclosure to the Philippine Stock Exchange on January 8.
In the first week of the new year, ALI acquired through its unit Regent Wise Investments Ltd. an additional 17.24 percent in MCT. The move increased ALI’s shareholding to 50.19 percent, from the previous 32.95 percent.
ALI neither disclosed the amount of the additional acquisition nor the amount of the takeover offer.
Malaysian laws oblige ALI to conduct a mandatory takeover offer on all of MCT Berhad once the agreement became unconditional.
“This increase in ownership will strengthen ALI’s commitment to enhance MCT’s operations and expand its business further. This will also provide ALI with a greater opportunity to take advantage of the growth potential and long-term prospects of the real-estate sector in Malaysia and will affirm ALI’s role as a key player in the Asean property sector,” ALI earlier said. “With ALI’s solid track record in developing large-scale, integrated, mixed-use and sustainable estates across the Philippines and in growing its diversified product lines, we believe that it is in a highly capable position to boost the performance and enhance the value of MCT.”
MCT has a market capitalization of about $450 million, making it a midsized firm when compared to biggest property company in Malaysia that has a capitalization of about $2.5 billion to $3 billion.
MCT was first established in 1999 as a construction company. The company has transformed itself as a property development company specializing in mixed-use projects that include retail, office, hotel and mid- to affordable residential.
The company was able to deliver projects at lower costs by adhering to a modular construction technique and by being an integrated builder with an in-house design team, in-house trading company, direct execution of specialist works and its own precast and ready-mixed concrete plants.
It has several ongoing projects in One City Subang Jaya and Cyberjaya, as well as a land bank in Dengkil, 1.5 kilometers away south of Cyberjaya. These projects are all located in Malaysia’s Klang Valley.