The infrastructure unit of the Aboitiz Group is acquiring GMR-Megawide Cebu Airport Corp., the operator of Mactan Cebu International Airport, for P25 billion.
Megawide Construction Corp. and GMR Airports International BV said Friday they would sell their entire stakes in GMR-Megawide Cebu Airport to Aboitiz InfraCapital Inc.
The agreement involves GMCAC’s issuance of primary shares and the transfer of secondary shares from Megawide and GAIBV to AIC amounting to P9.5 billion, which would result in the latter owning 33 and 1/3 percent minus 1 share stake in GMCAC.
The transaction also involves the issuance by Megawide and GAIBV of exchangeable notes for the aggregate amount of P15.5 billion. The notes will mature on Oct. 30, 2024 and will be exchanged by AIC for the remaining 66 and 2/3 percent plus 1 share of GMCAC’s outstanding capital stock.
“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,” said Megawide chairman and president Edgar Saavedra.
The move is also in line with Megawide’s strategy of constantly re-engineering its business and financial portfolio to support its vision of engineering a First-World Philippines.
Saavedra said the agreement would enable Megawide to crystallize the asset’s fair market value and help unlock resources that would accelerate its developmental infrastructure portfolio and allow it to strengthen its balance sheet, as part of long-term financial management program.
“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 chief executive Cosette Canilao.
Megawide earlier 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 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 said.
The transaction is subject to the satisfaction of customary closing conditions including requisite third party and regulatory approvals.
BDO Capital & Investment Corp. acted as financial advisor and Romulo Mabanta Buenaventura Sayoc & de los Angeles and Shardul Amarchand Mangaldas & Co as legal counsels for Megawide and GAIBV, while AlphaPrimus Advisors acted as financial advisor and Gulapa Law as legal counsel for AIC in the transaction.
