Home Economy Megawide completes airport operations exit, commits to strengthening infrastructure focus

Megawide completes airport operations exit, commits to strengthening infrastructure focus

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THE COMPLETION of this transaction allows Megawide to focus on its property development and precast and construction solutions units. — ABOITIZINFRACAPITAL.COM

MEGAWIDE Construction Corp. has completed the divestment of its equity stake in Mactan Cebu International Airport to Aboitiz InfraCapital, Inc. for P7.76 billion, fully exiting from the airport’s operations.

The company divested its remaining 33.3% equity stake in Aboitiz GMR Megawide Cebu Airport Corp. (AGMCAC) to Aboitiz InfraCapital, the company said in a disclosure to the stock exchange on Wednesday.

This move gives Aboitiz InfraCapital full control of the airport. It follows the 2022 agreement where Megawide and its partner, GMR Airports International BV, executed a share subscription and transfer agreement with Aboitiz InfraCapital.

“On this date, (Megawide) assigned, sold, transferred, and conveyed, absolutely and irrevocably unto Aboitiz InfraCapital all of its remaining 2.64 billion outstanding capital stock in GMCAC to Aboitiz InfraCapital,” Megawide said.

The completion of this transaction allows Megawide to focus on its property development and precast and construction solutions (PCS) units, Megawide President and Chief Executive Officer Edgar B. Saavedra said.

“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),” Mr. Saavedra said, highlighting the strategic shift towards enhancing the company’s core business areas.

This final closing is also expected to free up Megawide’s outstanding current liabilities while also boosting its liquidity position, the company also said.

Megawide is a listed construction and engineering company. It is the operator of PITX and is currently constructing Malolos-Clark Railway Package 1 and Metro Manila Subway Project Contract Package 104.

Earlier this week, the Philippine government and Aboitiz InfraCapital formally signed the contract for the operations and maintenance of the P12.75 billion Laguindingan International Airport.

The group is expected to take over the airport in Misamis Oriental in April next year.

Aboitiz InfraCapital also holds the original proponent status for the operations and maintenance of the P4.5-billion New Bohol-Panglao International Airport, which is currently undergoing a Swiss Challenge. — Ashley Erika O. Jose

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