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Economy

Philippines' Ayala pulls out of Vietnamese infrastructure venture

MANILA -- Philippine conglomerate Ayala Corp. on Tuesday said it was pulling out of an infrastructure venture it set up with a Vietnamese company in 2012.

Ayala's board has approved the sale of its entire stake in Vinaphil Technical Infrastructure Investment Joint Stock Company to Ho Chi Minh City Infrastructure Investment Joint Stock Co. (CII), according to a stock exchange filing, which did not provide further details.

An Ayala official did not immediately respond to a request for comment, while the Nikkei Asian Review has yet to contact CII, a major infrastructure developer in Vietnam.

Ayala and CII formed Vinaphil four years ago, with the Philippine company owning 49% and Vietnamese investors holding 51%. It has a charter capital of $43 million. 

Ayala President Fernando Zobel de Ayala in 2012 said the investment would enable his company "to participate in Vietnam's fast-growing infrastructure sector," and give Ayala "access and an option to pursue other infrastructure opportunities in the region."

Ayala still has a presence in Vietnam through Manila Water, which has bulk water supply investments in Ho Chi Minh City.

Another major Philippine company also has a venture with CII. Last year, Metro Pacific Investments entered into an equity and financing deal with CII, giving the Philippine infrastructure conglomerate a 45% stake in CII Bridges and Roads Investment Joint Stock Co.

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