MANILA, Philippines - Ayala Corp. said on Friday its wholly-owned unit Michigan Power Inc. has increased its authorized capital as the country's oldest holding firm prepares for more investments in the power sector.

Michigan's board approved the increase in its authorized capital to P1 billion from P10 million at a meeting on Thursday, Ayala said in a disclosure to the stock exchange.

Michigan would be renamed AC Energy Holdings Inc. and would be the surviving entity in a merger with its wholly-owned subsidiaries, which hold stakes in Northwind Power Development Corp., the group also said.

That meant Ayala would directly own 50% of Northwind, which operates a 33-megawatt wind farm in northern Ilocos Norte province. In March, Ayala said it bought half of Northwind through its subsidiaries.

The Ayala group is looking to raise P10 billion for new investments via the sale of preferred shares this year or in 2012, managing director and treasurer Ramon Opulencia said on Thursday. He did not specify the investments the group was considering.

The Ayala group has said it plans to build a portfolio of power generation assets of more than 1,000 megawatts over the next five years, and expand into infrastructure.

Last month, Ayala said Michigan would invest P600 million for a 70% stake in a joint venture to develop run-of-the-river hydroelectric power projects across the country.

The Ayala group owns the country's biggest property firm, Ayala Land Inc., the second-biggest telephone company Globe Telecom Inc., and the third-largest bank by assets, Bank of the Philippine Islands.

It also owns utility Manila Water Co. and has interests in business process outsourcing, electronics, and car dealerships.