05 Aug Ayala sells 82.5% stake in IQ BackOffice
The Ayala-owned business process outsourcing (BPO) firm, LiveIt Investments Ltd, has divested 82.5 percent of its stake in IQ BackOffice Holidays Ltd (PSE: IQB).
In a disclosure to the Philippine Stock Exchange (PSE), Ayala Corp. (PSE: AC) stated that its wholly owned BPO and has sold its stake to the management of the Los Angeles-based IQ BackOffice, done through a management buyout.
The management of IQ BackOffice will now wholly own the BPO company. However, the sales only involves the selling of the finance and accounting operations (FAO) of the company. The human resources outsourcing (HRO) operations will remain under the management of LiveIt.
“The transaction is for the sale of IQB’s FAO operations only,” Ayala announced in the disclosure to PSE.
“LiveIt will retain the HRO business, which supports many of the Ayala Group companies and is considered a strategic asset,” the company added.
IQ BackOffice offers outsourcing services in the areas of finance, accounts and human resources. It has operations in India, Mauritius, the Philippines and the US.
In the country, it began as a shared services unit for Ayala and other public and private companies with segments in real estate property management, restaurants, telecommunications and hospitality and utilities.
Ayala, incorporated in 1968, is the holiday company of the Ayala Group of Companies with diversified business interests in real estate and hotels, power generation, financial services and transport infrastructure to name a few.
Among its most recent transactions is its closed deal to secure funding to build the fourth unit of its 540megawatt (MW) coal-fired power plant in Mindanao, GNPower Kauswagan Ltd. Co. under its energy subsidiary, AC Energy Holidays, Inc.
The partnership between the oldest conglomerate in the country and IQ BackOffice was forged when Ayala acquired a stake in IQ BackOffice via one of its investors in LiveIt Investments in a $15 million (P704 million) deal in 2011.