(Last Updated On: September 2, 2022)
Megawide Construction Corporation (“MWIDE”), GMR Airports International BV (“GAIBV”), and Aboitiz InfraCapital, Inc. (“AIC”) executed a Share Subscription and Transfer Agreement (the “Agreement”) today where AIC will subscribed to shares of GAIBV.
Megawide (MWIDE) shares has been moving up from the past several days pricing in the shares subscription of AEV. It peaked by 19% in just 2 trading days.
Aboitiz Equity Ventures shares were also up by 6% for todays trading.
Megawide corporation is the developer and operator of the award-winning Mactan Cebu International Airport (“MCIA”).
If the deal would push through it will be executed on Closing Date (which is approximately 105 days from the Execution Date):
The details of the disclosure is stated below
1. For a total amount of Php 9,473,600,000.00, AIC shall own 33 and 1/3% minus 1 share of the outstanding capital stock of GMCAC; MWIDE will retain 33 and 1/3% plus 1 share, while GAIBV will retain 33 and 1/3%.
2. MWIDE and GAIBV shall issue Exchangeable Notes in favor of AIC in the total amount of Php 15,526,400,000.00 (the “Notes”). The Notes will mature on 30 October 2024, and will be exchanged by AIC for the rest of the 66 and 2/3% plus 1 share of GMCAC’s outstanding capital stock.
According to BDO Capital & Investment Corp. President Eduardo V. Francisco the deal would help each other to support their finances.
“The transaction was accepted and deemed fair by all parties and aligned with their respective long-term goals. For GMCAC, the infusion provides it more financial muscle, with a higher capitalization, bigger balance sheet, and an improved gearing ratio. It also paves the way for the entry of another experienced and strong industry player,” said BDO Capital & Investment Corp. President Eduardo V. Francisco.
In the construction business, Megawide bagged several big-ticket projects, such as the Malolos-Clark Railway Project and the Metro Manila Subway System Project, to spearhead its pivot to infrastructure.
The Company is also exploring several transport-centric development (TCD) locations to complement its hub-and-spoke model with the Paranaque Integrated Terminal Exchange and engaging in its own brand of urban renewal through the Carbon Market Redevelopment. “In the medium-term, we are seriously looking at diversifying into other exciting and high growth infrastructure platforms, where we can leverage our engineering and construction expertise. At the end of the day, we believe it is the further value creation, which the transaction unlocks, that makes it very rewarding and exciting, and something to look forward to,” Saavedra ended.
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