House of Investments and Ayala Complete Strategic Merger of Education Companies

MAKATI, Philippines – May 2, 2019 House of Investments Inc. (“HI”) and its education holding company iPeople, inc. (“iPeople”), and Ayala Corporation (“AC”) and its wholly-owned education subsidiary AC Education, Inc. (“AC Education”), announced the completion of the merger of AC Education with iPeople. The merger has received all necessary board, stockholder and regulatory approvals and is effective as of today. Post-merger, listed iPeople shall be the surviving entity, with HI and its affiliates, and AC, controlling 51.3% and 33.5%, respectively. The transaction values the combined entity at approximately Php15.5 billion.

HI and AC will share governance and management of iPeople which, as a result of this strategic partnership, will become one of the leading education groups in the country, with almost 60,000 students.

The merger brings together the 7 educational institutions of iPeople and AC Education, which together will offer quality education to students across all income segments, with campuses in Metro Manila, Calabarzon, the Bicol Region, and Mindanao. The merger includes iPeople and its significant subsidiary, Malayan Education System, Inc. (Operating under the name of Mapua University), one of the country’s leading engineering and technical universities, a world ranked QS-3 star university and the school with the most CHED Centers of Excellence in Engineering, and its subsidiaries, Malayan Colleges Laguna (A Mapua School), the best board exam performing private school in Calabarzon, Malayan Colleges Mindanao (A Mapua School) in Davao, and Malayan High School of Science in Manila. It also includes AC Education’s subsidiaries, the University of Nueva Caceres, one of the oldest and largest universities in Bicol, National Teachers College, the country’s pioneer private teachers’ training tertiary education institution, and APEC Schools, the largest chain of private stand-alone high schools in the country.

“We are delighted to complete this merger and are looking forward to building on Mapua’s expertise as one of the top STEM (Science, Technology, Engineering and Mathematics) schools in the country, and AC Education’s track record in delivering affordable career-focused courses in partnership with industry. House of Investments and Ayala Corporation both believe that quality education is critical to accelerating the progress of our country and believe that this merger will enable us to together step up our participation in this very important sector,” said Mrs. Helen Y. Dee, Chairperson of House of Investments, Inc. and the Yuchengco Group of Companies.

“We are very pleased to be partnering with the Yuchengco Group of Companies. We are also excited about the many potential synergies that will allow us to better provide our students with the technical, critical thinking and real-world problem-solving skills they need to be successful in our rapidly changing 21st century job market. Collectively, we can leverage our combined strengths in STEM, Outcomes Based Education, distance learning and cost effective EdTech, and our students and alumni can benefit from career opportunities catalyzed by our schools’ talent development partnerships with the Yuchengco Group of Companies, the Ayala Group of Companies and other leading industry groups,” said Jaime Augusto Zobel de Ayala, Chairman and CEO of Ayala Corporation.
RCBC Capital Corporation acted as the exclusive financial adviser to HI, while BPI Capital Corporation acted as the exclusive financial adviser to AC Education.

Contact Information

House of Investments, Inc.
Investor Relations Office
Ring F. Joven
Email: rfjoven@hoi.com.ph

iPeople, inc.
Investor Relations Office
Vic Rafael
Email: vvrafael@hoi.com.ph

Ayala Corporation
Corporate Communications
Yla Patricia G. Alcantara
Email: alcantara.ypg@ayala.com.ph