Ayala Corporation purchased 35 million shares of its real estate arm, Ayala Land Inc. (ALI), for nearly ₱458 million ($7.8 million). The transaction occurred on June 16 following a 40% decline in the subsidiary's stock price this year.
This acquisition increases the parent conglomerate's ownership stake in the developer to 53.58%. Market analysts interpret the move as a significant vote of confidence, suggesting the parent company views the shares as undervalued.
Ayala Land shares rallied by as much as 4.62% on June 17 following the regulatory filing. The stock has faced persistent pressure from rising interest rates and cooling residential demand.
The purchase follows a recent downgrade from one brokerage firm. However, other analysts maintain a buy rating, viewing the recent price weakness as a market risk rather than a sign of impaired value.