Feb. 24--Acquires 49% of Zalora PH
THE Ayala group is now in the e-commerce business after acquiring a 49 percent stake in online fashion platform Zalora Philippines.
In several statements on Thursday, parent conglomerate Ayala Corp. (AC) said the group signed a partnership agreement with Global Fashion Group (GFG) to own 49 percent stake in Zalora PH operator BF Jade E-Service Philippines Inc.
AC acquired 43.3 percent of Zalora while Ayala Land Inc. subscribed to 1.9 percent, with another 3.8 percent acquired by other Ayala group companies including investment bank BPI Capital Corp. and Kickstart Ventures Inc., a business incubator of Globe Telecom Inc.
AC said the acquisition is part of the group's strategy to invest in new disruptive businesses that provide solutions in the evolving Philippine market. Last February 9, AC's healthcare unit Ayala Healthcare Holdings Inc. (AC Health) also bought a minority stake in the operator of an e-pharmacy called MedGrocer.
The company said e-commerce is a unique growth channel to complement its existing businesses.
"This investment demonstrates how we, at Ayala, look at innovation and growth opportunities. We see the potential of e-commerce in the country, and believe that the Ayala group can benefit and add tremendous value to Zalora," AC Chairman and Chief Executive Officer Jaime Augusto Zobel de Ayala said.
"The investment presents new opportunities for Ayala to generate synergies throughout the ecommerce value chain," he said, adding that new business models such as Zalora's "can provide alternative solutions and services that are complementary to our traditional brick and mortar operations."
Established in 2012, Zalora PH is a part of the Zalora Group under GFG. The online platform offers over 120,000 products across more than 1,000 brands in accessories, beauty, clothing, shoes, and sports.
"Through the partnership with Ayala Corp.--one of the country's longest standing and well diversified business corporations--Zalora Philippines will now not only be able to benefit from the support and expertise of GFG and Zalora but also from the synergies and support of the Ayala companies," GFG CEO Romain Voog said.
The transaction is still subject to the approval of the Philippine Competition Commission.
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