Logistic corporation (ALLHC) under Ayala Corporation (AC) reach a deal to acquire 60% of Mr. Alberto D. Lina’s AIR21 Holdings Inc, through issuance by Mr. Lina of an exchangeable note to AC Logistics and AC Logistics’ subscription to primary shares of AHI.

The deal was sealed last August 30, 2022, AC Logistics and Mr. Lina reached financial close for the acquisition by AC Logistics of a 60% interest in AHI, amounting to a total of Php 6 billion, through issuance by Mr. Lina of an exchangeable note to AC Logistics, and AC Logistics’ subscription to primary shares in AHI.

According to AC recent disclosure on PSE edge;

The acquisition in AHI gives AC Logistics, through the various subsidiaries of AHI, an end-to-end logistics platform capable of serving the supply chain requirements of multiple industries in high-growth markets. The AIR21 Group is engaged in a broad range of supply chain services covering, door-to-door express delivery, international and domestic freight forwarding, warehouse operations, management, and digitization, and waste logistics management.

AHI is a holding company that owns majority interest in AIR21, AIR21 Subic, U-Freight, U-Ocean, CHI, LGC, WARM and IWMI. These companies provide a broad range of logistics services that include door-to-door express delivery, international and domestic freight forwarding, warehouse operations, management, and digitization, and waste logistics management.

Terms of Transactions for the share swap agreement with AHI

The investment in AHI will provide AC Logistics with an end-to-end supply chain platform that is capable of servicing the needs of growing and evolving industries and ecosystems.

The addition of the AIR21 Group to the AC Logistics portfolio, together with Entrego, creates synergies that can potentially generate greater operational efficiency and more efficient asset utilization. The combination of their respective capabilities puts the Ayala Group in a better position to provide technology driven end-to-end logistics services that can help address some of the challenges related to pharma and healthcare aides access, food preservation, and proper waste management according to AC logistics President and CEO Rene Almendras.

Shares of AC logistics holdings is currently up by 3% upon market opening.

My Affiliates for Today:

Item PhotoCost (Php)Item Description
Click Here to View456.0Original Portable Hanging Neck Fan Rechargeable Usb Mini Fan Electric Fan Headset Fan Outdoor Sports
Click Here to View1,399OPPO Band B1 Bluetooth Watch 1.1-inch AMOLED Screen Continuous SpO2 Monitoring 50M Water Resistance
Click Here to View5,290realme C11 2021 (2+32GB)

The US market suffered significant losses after the Federal Reserve meeting last Friday indicates that there are more rate hikes for the near future as they continuously battle the persistent inflation.

The Dow jones drop by -3.03% and shed 1008.3 points from its chart, Nasdaq decline by -3.94% and loss -497.56 points, its biggest day drop since June and S&P 500 drop by as much as -3.37% or -141.36 points. The broader share index is in correction.

Feds use the interest hikes to battle the effects of inflation but raising interest rates causes investors to reduce their investments in risk assets as lending rate will hurt businesses when they borrow money from the banks.

Speculators expected a lessening of interest hikes but the dovish sentiment from the Feds and the expectation to raise it until next year dampen investors anticipation.

Powell speech indicated that this is necessary for the federal reserve to do to control inflation. “The fed is worried about rising prices and getting inflation under control is emphatically job number one” according to Jeff Klingelhofer, co-head of investments at Thornburg Investment Management.

Dow Jones Industrial Average

European markets followed the same movement and corrected as well.

It remains to be seen whether Banko Sentral ng Pilipinas (BSP) will follow the same route of aggressive interest rate hikes but there are indications of tightening as well in the future as mentioned by numerous reports.

Last Friday the index closed at 6,752.50. The PSE index is on a Holiday by August 29, 2022, the US market index impact will then be felt by  Tuesday market opening. Next technical support is at 6,580.