Megawide Construction Corp. of bilyonaryo Ed Saavedra and India’s GMR Airports International BV (GAIBV) are divesting their shares in the company that operates the Mactan Cebu International Airport Corp. (MCIA) to the infrastructure arm of the Aboitiz family for P25 billion.
Based on a regulatory filing, Megawide and GAIBV agreed to unload their entire holdings in GMR-Megawide Cebu Airport Corp. (GMCAC) to Aboitiz InfraCapital (AIC).
The agreement involves the issuance by GMCAC of primary shares and the transfer of secondary shares from Megawide and GAIBV to AIC amounting to P9.5 billion, which will result in the latter owning 33 and 1/3 percent minus 1 share stake in GMCAC.
Megawide and GAIBV shall also issue P15.5 billion worth of exchangeable notes which can be converted by AIC into 66 and 2.3 percent plus 1 share of GMCAC’s outstanding capital. The notes will mature on October 30, 2024.
Saavedra, chairman and CEO of Megawide, said the sale would allow the company to strengthen its balance sheet and crystalize the asset’s fair market value to unlock resources that will speed up the expansion of its infrastructure portfolio.
“We have always been open to partnerships that will enhance our capabilities and diversify our portfolio as an infrastructure innovator. The company’s thrust of being an infrastructure innovator remains on track with this deal as we harness synergies with other major participants in the field,” Saavedra said.
Megawide is keen on exploring more resilient, high-growth and scalable opportunities including transport-centric developments. It earlier bagged big-ticket projects such as the Malolos-Clark railway projects and the Metro Manila Subway System.
“We at Aboitiz InfraCapital are happy to partner with GMR-Megawide for the continued growth and development of the Mactan-Cebu International Airport. The GMR-Megawide consortium has done a tremendous job by significantly expanding the airport over the pre-pandemic years – almost tripling passenger traffic in five years. This is quite an accomplishment in setting up a solid foundation for the future,” said AIC president and CEO Cosette Canilao.
The transaction is subject to the satisfaction of customary closing conditions including requisite third party and regulatory approvals.