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Megawide Construction Corp. is now in full control of the joint venture that developed Clark International Airport
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Megawide has bought out its subsidiary, Megawide GMR Construction JV, Inc., from partners GMR Infrastructure Singapore Pte. Limited and GMR Global Pte. Ltd.
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Megawide’s Board of Directors on January 9 approved the acquisition of 45% of the outstanding capital stock of the JV from GISPL for P70.839 million, and acquisition of 5% of the outstanding capital stock of JV from GHOSPL for P7.871 million
Megawide Construction Corp. is now in full control of the joint venture that developed Clark International Airport.
Megawide Construction bought out its subsidiary, Megawide GMR Construction JV, Inc., from its partners GMR Infrastructure Singapore Pte. Limited (GISPL) and GMR Global Pte. Ltd. (GHOSPL).
In a regulatory disclosure, Megawide said its Board of Directors on January 9 approved the execution of a share purchase agreement for the acquisition of 45% of the outstanding capital stock of JV from GISPL for P70.839 million.
In a separate regulatory disclosure, the Board also approved the execution of a share purchase agreement for the acquisition of 5% of the outstanding capital stock of JV from GHOSPL (formerly GMR Holdings) Overseas Singapore Pte Ltd.) for P7.871 million.
Megawide set the execution and closing date of the share purchase agreements for January 9.
Megawide said “the transaction will allow the Company to wholly own its existing subsidiary, Megawide GMR Construction… where it can leverage its engineering and construction expertise; and at the same time strengthen its balance sheet.
Moreover, Megawide said the transaction is in line with its strategy of constantly re-engineering its business and financial portfolio to support its vision of engineering a “First-World Philippines,” and to explore more resilient, high-growth, and scalable opportunities to anchor its long-term and sustainable growth agenda.
In 2017, the joint venture between Megawide and India’s GMR Infrastructure won the contract to engineer, procure, and construct the second CRK passenger terminal building, which was turned over to private operator Luzon International Premier Airport Development Corp. in 2021.
Megawide and GMR were also joint partners for the 25-year concession agreement to develop, operate, and maintain the Mactan-Cebu International Airport, but last year sold their stakes in Aboitiz GMR Megawide Cebu Airport Corp. to Aboitiz InfraCapital, Inc.
READ: Aboitiz finalizes acquisition of shares in Cebu airport operator
Also last year, Megawide secured the contract to design and construct a new passenger terminal building at the Caticlan Airport in Aklan.
