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MANILA, Philippines – Megawide Construction Corp. sold its treasury sales valued at P2.23 billion, which include shares acquired from Henry Sy, Sr.
Megawide’s board approved the selling of its shares from yesterday’s (October 28, 2016) closing price of P15.64. At P14.90 per share, it has sold its 150 million treasury shares with a 4.7 percent discount, as mentioned in a disclosure to the Exchange.
The construction and engineering firm sold the shares to new investors to raise funds for loans settlement. The proceeds of treasury sales will compensate for the short-term loan acquired by the firm to obtain Sybase Equity Investments shares of Sy Family. The Sybase shares for five-year diversification plan amounted to P6.12 billion, which is consisted of 410.84 million shares at P10.0379 per piece.
The five-year diversification plan will include Megawide’s transformation into a conglomerate for variants of infrastructure and engineering projects. Through this pure construction to a well diversified firm shift, the organization’s revenues are expected to increase.
Apart from construction, Megawide will also include airport operations, power generation, transport developments, and other construction businesses if the plan succeeds. The construction firm highlights its focus on utilizing renewable energy throughout its projects.
The transaction was done in an accelerated private placement deal. First Metro Investment Corp. acted as the offering’s domestic manager, whereas CLSA served as the transaction’s sole bookrunner and global coordinator.
In 2015, the firm’s total income came from airport businesses at 34 percent and construction segment at 66 percent.
In 2014, the construction company was able to acquire the project for second passenger terminal development in Mactan Cebu International Airport. This is simply a part of the airport’s 25-year operations management.
During the first semester of the year, the firm registered P1.2 billion income, which is an increase by 49 percent. Its total revenues rose to P10.07, a 77 percent improvement. Majority of its returns, equivalent to 91 percent, is contributed by its P9.17 billion revenue from construction segment.
Megawide remains optimistic that its revenues will further boost in line with infrastructure projects pushed through by the Duterte administration.