Aboitiz InfraCapital, Inc. has acquired P9.5-billion shares from GMR-Megawide Cebu Airport Corporation, the developer and operator of the Mactan Cebu International Airport, the country's second busiest air hub. The venture marks Aboitiz Infra's entry into airport development.

In a stock exchange report on Friday, Megawide Construction Corp. said it agreed to sell its 33.3 percent existing stakes in GMCAC to accommodate the entry of AIC through a Share Subscription and Transfer Agreement. The sale was approved by Megawide's joint venture partner, India-based GMR Airports International BV.

Megawide and GAIBV are joint venture partners for the 25-year Concession Agreement to develop, operate, and maintain MCIA. The transaction came amid Megawide's move to "explore more resilient, high-growth, and scalable opportunities to anchor its long-term and sustainable growth agenda."

Under the agreement, Megawide and GAIBV should eventually allow the AIC to fully control the MCIA by issuing exchangeable notes with an aggregate value of P15.5 billion, which will mature by 30 October 2024. AIC will exchange the notes for the remaining 66.66 percent of GMCAC's outstanding capital stock.

According to BDO Capital & Investment Corp., which acted as a financial advisor, the transaction is subject to the satisfaction of customary closing conditions, including requisite third party and regulatory approvals.

"The transaction was accepted and deemed fair by all parties and aligned with their respective long-term goals.

For GMCAC, the infusion provides many benefits, including financial muscle, higher capitalization, a bigger balance sheet, and an improved gearing ratio. It also paves the way for the entry of another experienced and strong industry player," BDO Capital & Investment Corp. President Eduardo V. Francisco said.