MANILA - Ayala Corp said Wednesday one of its units was selected as the "preferred bidder" for a Kia distributorship in the Philippines.

Should negotiations succeed, it will grow Ayala Corp's vehicle distribution business which includes, Honda, Isuzu, Volkswagen and KTM motorcycles.

Ayala Corp said it received notice from Kia Motors Asia Regional headquarters that it was being considered as a "preferred bidder to start negotiations."

"However, no definitive terms have been reached and we will make the appropriate disclosure of any agreement reached," Ayala Corp told the stock exchange.

Kia cars in the Philippines are currently assembled and distributed by Columbian Autocar Corp.

Ayala Corp issued the statement after sports website spin.ph reported that the conglomerate was set to acquire Kia Philippines and revive the Kia basketball team.

Ayala Corp's vehicle distribution business falls under its subsidiary, AC Industrials.

• Car makers 'cautious' on sales due to new taxes

Shares of Ayala Corp were down 2.43 percent in early trading, compared to a 1.58-percent advance in the main index.

Ayala Corp is in talks to expand its automobile business even as taxes on cars and fuel were increased last Jan. 1 under the first tranche of tax reforms.