Megawide absorbs Clark airport JV
Megawide Construction Corp. has fully absorbed the joint venture (JV) developing the Clark International Airport (CRK) for P78.71 million, allowing it to leverage its engineering expertise and boost its balance sheet.
In separate stock exchange disclosures on Friday, the company led by tycoon Edgar Saavedra said it had bought the shares of GMR Global Pte. Ltd. (GHOSPL) and GMR Infrastructure Singapore Pte. Ltd. (GISPL) in Megawide GMR Construction JV Inc.
Megawide bought GISPL’s 45-percent stake for P70.84 million, and GHOSPL’s 5-percent ownership for P7.87 million.
The listed construction firm now fully owns Megawide GMR, “where it can leverage its engineering and construction expertise and at the same time strengthen its balance sheet,” it said.
The erstwhile joint venture company was formed in 2018 when the national government awarded the contract to Megawide.
The company was tasked with increasing CRK’s passenger capacity by designing and building a new terminal building.
Megawide GMR turned over the new building to the government in July 2021. The Luzon International Premier Airport Development Corp. has since been operating and maintaining the facility.
Most of Megawide’s major projects are partnerships with the national government, including the Metro Manila Subway System and the Malolos-Clark Railway project.
The government’s continued focus on infrastructure development is seen to boost Megawide’s prospects this year, with the company aiming to create an “equal share” in its order book among all its projects, including real estate.
Liquidity boost
Last October, Megawide divested its remaining stake in the Mactan Cebu International Airport for P7.76 billion to boost its liquidity amid a gradual shift to property development.
Megawide sold its remaining 33.33 percent plus one share in Aboitiz GMR Megawide Cebu Airport Corp. to Aboitiz InfraCapital Inc. two years after first announcing the sale.
In 2022, Megawide said Aboitiz Infra would take over the airport venture in a P25-billion deal.
Back then, Megawide also issued exchangeable notes to Aboitiz Infra worth P15.5 billion. These matured on Oct. 30, 2024, and were converted into the remaining shares of the airport venture.
Exchangeable notes are debt securities that can be traded for shares in a company—in this case, the airport venture.
Proceeds from the deal were used to acquire real estate firm PH1 World Developers Inc. in July 2023, Megawide said.
Megawide also recently bagged the P1.87-billion contract to develop Cavite’s bus rapid transit system and point-to-point route that spans a 42-kilometer stretch.
The project is expected to help ease travel to the province from Metro Manila, and vice versa.
