The Zobel’s Ayala Group is venturing into the importation and distribution of e-scooters through an $8.5 million (P480 million) joint venture with Gogoro Network Pte Ltd of Singapore (Gogoro SG).

In a disclosure to the Philippine Stock Exchange, Ayala Corporation (AC) said it will establish a joint venture with 917Ventures Inc., a subsidiary of Ayala’s Globe Telcom Inc., and Gogoro SG for the importation, sale, distribution, operation, management and maintenance of Gogoro two-wheeled scooters.

The venture will include battery swapping technology, battery swapping stations for the e-scooters, and after-sales services business in the Philippines through Gogoro Philippines Inc. (Gogoro PH).

Ayala, 917Ventures and Gogoro SG have executed executed a Joint Venture Agreement last Aug. 24 to establish a joint venture for the launch of the Gogoro two-wheeled EV battery swapping technology in Metro Manila. 

AC likewise entered into a Subscription Agreement with Gogoro PH to subscribe to 42 million common shares of Gogoro PH for a 21 percent stake while 917Ventures shall own 98 million common shares, which is equivalent to 49 percent of Gogoro PH.

917Ventures is a wholly-owned subsidiary of Globe Telecom and is a corporate venture builder that scales, launches, and accelerates new business ideas that uplift the lives of Filipinos.

Gogoro SG, on the other hand, is a wholly-owned subsidiary of Gogoro Inc., a listed company in NASDAQ that has developed a battery-swapping refueling platform for urban electric two-wheeled scooters, mopeds, and motorcycles. 

The Singaporean firm also develops its own line of electric scooters and offers its own vehicle innovations to vehicle maker partners. Gogoro SG shall own 60 million common shares, which is equivalent to 30 percent of Gogoro PH.

The parties, through Gogoro PH, shall undertake the importation, sale, distribution, operation, management and maintenance of two-wheeled e-scooters with battery swap technology under the Gogoro brand, battery swapping stations and after-sales services business relating thereto including spare parts, which may include the importation and distribution of other e-scooter brands that are compatible with the battery swapping stations, in the Philippines.

The transaction is expected to close within 10 days from signing of the Subscription Agreements, subject to customary closing conditions, including relevant regulatory approvals, if any.

Ayala has prioritized the electric mobility space as an area of growth – with interests in the entire EV ecosystem, including two-wheeled and four-wheeled electric vehicles, charging infrastructure, and the overall customer lifestyle. 

“Recent developments in the global EV industry as well as in the local regulatory landscape have affirmed our belief that the transition to EVs is well underway, and that the market in the Philippines is prime for disruption,” Ayala said.

On closing date, the parties shall infuse the aggregate amount of $8.5 million into Gogoro PH.