AYALA Land Inc. (ALI), the property development unit of Ayala Corp., is consolidating with at least 34 subsidiaries as part of an internal restructuring plan to simplify management and ownership structures.

The proposed consolidation, with ALI as the surviving entity, was approved by the board of directors at a special meeting on Tuesday, the company said in a disclosure on Wednesday.

The property giant has direct ownership of 24 entities, while the remaining are owned indirectly either through AyalaLand Estates Inc. and AyalaLand Hotels and Resorts Corp.

The merger plan will be filed with the Securities and Exchange Commission once stockholder approval is obtained during ALI's annual meeting on April 25. Regulatory approval is expected to be secured "within the year."

ALI noted that the transaction is "expected to result in operational synergies, efficient fund management, and simplified reporting to government agencies."

Following the merger, the company will issue about 883.2 million Treasury shares, subject to regulatory approvals on the merger and issuance of shares.

ALI's outstanding common shares, net of treasury shares, will be approximately 15.05 billion after the merger, while its outstanding preferred shares will stay at around 12.44 billion before and after the transaction.

The Ayala-led real estate developer closed 2023 with a net income of P24.5 billion, up 32 percent year-on-year, on the back of robust property demand and heightened consumer activity. Last year, it launched 25 projects worth a total of P75.9 billion.

The company has more than 12,000 hectares in its landbank and 30 estates and is present in nearly 60 growth centers across the country. It boasts a portfolio of residential developments, shopping centers, hotels and resorts, and office buildings.

ALI shares were up by P1.40, or 4.33 percent, at P33.70 each on Wednesday.

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