Philippine-based Ayala Corporation To Transfer Part Ownership of AC Health to ABC Impact, a Subsidiary of Temasek Holdings
Ayala Corp., the Philippines' oldest conglomerate, founded in 1834 as a distillery by the great-grandfather of Jaime Zobel de Ayala, has taken a significant step forward in its healthcare division. In a strategic move, AC Health, a subsidiary focused on making healthcare more inclusive, has entered into a partnership with Dexa Group, one of Indonesia's largest pharmaceutical companies.
This partnership marks the first known investment by ABC Impact, a Singapore-based investor backed by Temasek, in a Philippine company. ABC Impact will inject primary capital into AC Health to support its expansion, aiming to strengthen systems and serve more communities across the Philippines.
Paolo Borromeo, CEO of AC Health, expressed that ABC Impact's investment reinforces the strength of their integrated model and commitment to making healthcare more inclusive. David Heng, CEO of ABC Impact, added, "This partnership with Ayala and AC Health reflects our mission to improve lives by advancing access to quality care."
AC Health's regional portfolio includes investments in India, China, and Vietnam. The company aims to expand its network to at least 10 hospitals, 300 clinics, and 1,150 pharmacies by 2027.
Ayala Corp. has been supporting AC Health's growth since 2015, investing 15 billion pesos ($263 million) into the company. Ayala Corp.'s latest plan is to grow AC Health into a unicorn with $2 billion in equity valuation by 2035, four times its current value.
As of April 2025, AC Health's valuation is estimated to be around $500 million, according to Ayala Corp.'s statement. This valuation likely reflects the latest equity status including the recent investments by partners such as ABC Impact, since the target $2 billion is set from today’s baseline value.
AC Health's operations span across various sectors. As of April, the company had 880 drugstores, two drug importers licensed to distribute over 1,178 medicines, 236 corporate and multi-specialty clinics, and six hospitals under Healthway Medical. The sale of the 16% stake by AC Health to ABC Impact has not disclosed an amount.
Ayala Corp. ranks seventh among the richest families in the Philippines with a net worth of $3.4 billion. The conglomerate has interests in banking, energy, logistics, utilities, real estate, and continues to strive for growth and innovation in its ventures.
[1] Ayala Corp.'s statement on AC Health's valuation can be found at https://www.ayalacorp.com/news/press-release/ayala-corp-announces-ac-health-s-new-strategic-partnership-with-dexa-group-and-abc-impact-to-accelerate-growth-in-the-philippines-healthcare-market/
In 2024, AC Health posted a net loss of 610 million pesos due to asset impairment charges and costs of its new cancer center, despite a 10% increase in sales to 9.4 billion pesos. Despite this setback, the company remains committed to its growth and inclusion goals.
Ayala Corp.'s plan is a growth strategy targeting a unicorn status (above $1 billion valuation) over the next decade, indicating significant scaling and funding rounds ahead. No contradictory or alternative valuation estimates for AC Health were found in the search results.
This partnership between AC Health and ABC Impact is a significant step towards Ayala Corp.'s goal of improving healthcare accessibility in the Philippines and establishing AC Health as a leading player in the region.
