Aboitiz seals P7.7-B Cebu airport takeover
Megawide said the deal will help lower its outstanding liabilities and enhance its liquidity
The Mactan Cebu International Airport is considered the crown jewel of the government’s ambitious infrastructure buildup.
Photograph Courtesy of Aboitiz InfraCapital
Megawide Construction Corp. has transferred its remaining GMR-Megawide Cebu Airport Corp. (GMCAC) shares to Aboitiz InfraCapital Inc. (AIC) in exchange for P7.76 billion.
While the transaction reaffirmed AIC’s role as the exclusive developer and operator of the internationally recognized gateway, Megawide said the deal will help lower its outstanding liabilities and enhance its liquidity.
Megawide confirmed it had transferred its remaining 33.33 percent share and one additional share in GMCAC to AIC for a “total consideration of P7.76 billion” in a report to the bourse.
According to Megawide, its 2,643,316,257 shares in GMCAC have been “assigned, sold, transferred, and conveyed, absolutely and irrevocably unto AIC.”
The development followed the September 2022 agreement between Megawide, its partner GMR Airports International BV, and AIC, under which AIC acquired an initial 33.33 percent share in GMCAC, with full acquisition set for 30 October.
25-year contract
GMCAC holds a 25-year concession to develop, operate, and maintain Mactan Cebu International Airport (MCIA).
“As an infrastructure innovator, the completion of the airport transaction facilitates our natural progression into property development and allows us to focus on our Precast and Construction Solutions (PCS) unit — which serves as our unique competitive advantage against other industry players — and our other infrastructure projects, including the Parañaque Integrated Terminal Exchange (PITX),” Megawide chairman and CEO Edgar Saavedra said.
“At the same time, this strengthens our balance sheet and forms part of our medium-term financial management program,” he added.
Proceeds from Megawide’s initial transaction with AIC supported its acquisition of PH1 World Developers Inc. in July 2023.
In addition to MCIA and PITX, Megawide has delivered 10,000 classrooms for the Department of Education’s PPP for School Infrastructure Project, completed the design and construction of the new Clark International Airport Passenger Terminal Building, and is currently working on the Malolos-Clark Railway Package 1 and Metro Manila Subway Project Contract Package 104.