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Aboitiz InfraCapital, Inc. finalized its acquisition of shares in GMR Megawide Cebu Airport Corp., which operates Mactan-Cebu International Airport
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The transaction is worth P9.5 billion
Aboitiz InfraCapital, Inc. (AIC) has finalized its acquisition of shares in Mactan-Cebu International Airport (MCIA) operator GMR Megawide Cebu Airport Corp. (GMCAC).
AIC acquired a 33 and 1/3% minus 1 share stake in GMCAC from Megawide Construction Corp. and GMR Airports International, B.V. (GAIBV) for a total consideration of P9.5 billion.
In addition, Megawide and GAIBV simultaneously issued exchangeable notes to AIC amounting to P15.5 billion, which will mature on October 30, 2024, and are expected to be exchanged by AIC for the remaining 66 and 2/3% plus 1 share of GMCAC’s outstanding capital stock.
Megawide and GAIBV, joint partners for the 25-year concession agreement to develop, operate, and maintain MCIA, have agreed to sell down their existing stakes in GMCAC to accommodate the entry of AIC.
“We are excited to finally consummate this transaction that will clear the runway for GMCAC’s next chapter, as well as accelerate Megawide’s long-term growth aspirations. We are also looking forward to unlocking more opportunities with this venture as we continuously re-engineer our portfolio towards achieving a First-World Philippines,” Megawide chairman and chief executive officer (CEO) Edgar Saavedra said in a statement.
AIC, for its part, said it envisions the deal to be the first step in its continued interest in the airport sector and in furthering its commitment to develop Philippine infrastructure in line with meeting the country’s recovery and rapid economic growth.
“We at Aboitiz InfraCapital are excited to have successfully completed this landmark deal with Megawide and GMR for GMCAC. We look forward to working side by side with our partners in further developing the Mactan-Cebu International Airport into a world class airport. The goal is to propel MCIA to the next level and establish its status as one of the Philippines’ premier international airports,” said AIC president and CEO Cosette Canilao.
Megawide earlier said it has been receiving interest from several parties to join its mission to modernize airport infrastructure in the Philippines, with the MCIA as the prototype.
The transaction is subject to the satisfaction of customary closing conditions, including third party and regulatory approvals.
