SAAVEDRA-LED developer Megawide Construction Corp. is buying out the 5-percent and 45-percent stakes, respectively, of partners GMR Global Pte. Ltd. (GHOSPL) and GMR Infrastructure (Singapore) Pte. Limited (GISPL), in joint venture company Megawide GMR Construction JV, Inc.
Megawide GMR Construction is the developer of the Clark International Airport.
In a series of disclosures on Friday, Megawide said that its board had approved the acquisition of the stakes held by GHOSPL and GISPL in Megawide GMR.
Megawide paid P7.87 million, or P0.8745 per share, for GHOSPL’s 5 percent stake, equivalent to 9 million equity shares, in the venture. It likewise paid P70.84 million for GISPL’s 45 percent interest, or 81 million shares, in Megawide GMR.
The transaction was executed and closed on Thursday, making Megawide GMR a fully-owned subsidiary of Megawide.
The valuation was agreed among the parties following a review of the joint venture’s assets, Megawide said.
“The transaction is in line with the company’s strategy of constantly re-engineering its business and financial portfolio to support its vision of engineering a first-world Philippines, and to explore more resilient, high-growth, and scalable opportunities to anchor its long-term and sustainable growth agenda,” it added.
GMR Airport, Inc., the parent firm of GHOSPL and GISPL parent GMR Airports International B.V., told the National Stock Exchange of India Ltd. on Thursday that “GBAIV … has agreed to divest its 50 percent stake in Megawide GMR Construction JV Inc. for a consideration of… P80 million.”
“Post completion of the EPC (engineering, procurement, and construction) works of Clark Airport, in the year 2020, MGCJV Inc. (JV) has not been carrying [out] any operations,” it noted.
Last October, Megawide unloaded its remaining stake in Aboitiz GMR Megawide Cebu Airport Corp. (AGMCAC), the operator of the Mactan Cebu International Airport, to Aboitiz InfraCapital Inc. for P7.76 billion. Prior to the divestment, Megawide held 33 and 1/13 percent plus 1 share of the outstanding capital stock in AGMCAC.
Megawide shares on Friday jumped by eight centavos, or 3.27 percent, to P2.53 each.
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