Aboitiz InfraCapital acquires stake in operator of Mactan-Cebu International Airport

Megawide Construction Corporation and GMR Airports International BV (GAIBV) executed (02-Sep-2022) a share subscription and transfer agreement for Aboitiz InfraCapital (AIC) to acquire shares in GMR-Megawide Cebu Airport Corporation (GMCAC), the operator of Mactan-Cebu International Airport (MCIA). The JV partners, which hold a 25 year concession agreement to develop, operate and maintain MCIA, agreed to sell down their existing stakes in GMCAC to accommodate the entry of AIC. Further details include:

• The agreement involves GMCAC's issuance of primary shares and the transfer of secondary shares from Megawide and GAIBV to AIC, amounting to PHP9.5 billion (USD167.2 million), which will result in AIC owning a 33.33% minus one share stake in GMCAC;
• The transaction also involves the issuance by Megawide and GAIBV of exchangeable notes for PHP15.5 billion (USD272.6 million). The notes will mature on 30-Oct-2024 and will be exchanged by AIC for the remaining 66.67% plus one share of GMCAC's outstanding capital stock;
• The agreement is subject to the satisfaction of customary closing conditions, including requisite third party and regulatory approvals.

Megawide chairman, CEO and president Edgar B Saavedra stated the transaction will enable the company to "crystallise" the asset's fair market value and will help unlock resources to accelerate Megawide's developmental infrastructure portfolio. He added it will also strengthen the company's balance sheet, as part of a long term financial management programme. [more - original PR]