Ayala Corp Is Booking a P1.6 Billion Loss in the Sale of a Majority Stake in German Car Parts Firm

Ayala Corp, through its wholly owned AC Industrial Technology Holdings Inc. unit, is selling its majority stake in MT Technologies GmbH to a Munich, Germany-based company. 

In a disclosure to the Philippine Stock Exchange, Ayala Corp said it has decided to sell its 92.45 percent stake in MT to Callista Asset Management 18 GmbH, which is an affiliate of Callista Private Equity.

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“The transaction will result in an approximately EURO26 million loss (about P1.6 billion), to be booked by AC Industrials and in turn Ayala,” the company said. 

MT, which is a majority-owned entity by Ayala Corp. through its AC Industrials (Singapore) Pte. Ltd., is a German auto parts-maker specializing in designing and manufacturing of injection molds for metal and plastic car parts.

MT’s clients include top German carmakers Volkswagen, Mecedes-Benz, Audi, Opel, and BMW. 

Why is Ayala selling MT?

Accoording to Ayala Corp., selling MT is part of the company’s strategic priority to realize value through a combination of strategic partnerships and divestments from certain non-core assets. Ayala will sharpen its focus on the continued expansion of its core businesses in real estate, banking, telecommunications, and power, and scaling up its emerging businesses in healthcare and logistics.

AC Industrials first acquired the controlling stake in the former MT Misslbeck in 2017. The company has since changed its name to MT Technologies.

In a statement, Callista also announced the acquisition of the C-CON Group from AC Industrials.

While Ayala Corp is divesting for the car parts maker, it is no stranger to the automotive business. AC Motors, which is also a unit under AS Industrials, is one of the top multi-brand car dealerships in the Philippines. Brands under AC Motors include Honda, Isuzu, Volkswagen, Kia, Maxus, and motorcycle brands KTM and Husqvarna. The company, led by its new president Jaime Alfonso Zobel, also recently announced that it is now the new distributor of Chinese automobile brand BYD in the Philippines.