Megawide to issue preferred shares
Megawide Construction Corp. is set to raise some P1.5 billion from its issuance of non-voting preferred shares.
According to its prospectus submitted to the Securities and exchange Commission, the company will offer up to 15 million in redeemable, non-reissuable perpetual Series 5 preferred shares, with a par value of P1, and will be offered at P100 apiece.
RCBC Capital Corp. has been picked as the deal’s sole issue manager, lead underwriter and bookrunner.
“the net proceeds for this offer will be used to fully redeem the Series 2A preferred shares. In case the offer does not materialize or the funds raised from the offer are insufficient to redeem the Series 2A preferred shares, the company will use internally generated cash and other programmed funding to finance the redemption of the Series 2A preferred shares,” the company said.
the said preferred shares are set to be listed on the Philippine Stock exchange in late March.
Proceeds of the Series 2A preferred shares were used by Megawide to finance various publicprivate partnership projects, such as the Mactan-cebu International Airport, Paranaque Integrated terminal exchange, Public School Infrastructure Project Phase II and Clark International Airport.
In december, Megawide and GMR Airports International B.V. have closed their transaction with Aboitiz Infracapital Inc. (AIC) for AIC’S acquisition of shares in GMR Megawide Cebu Airport Corp. (GMCAC), the developer and operator of Mactan-cebu International Airport.
AIC acquired a 33 and 1/3 percent minus 1 share stake in GMCAC from Megawide and GMR for a total consideration of P9.5 billion.
In addition, Megawide and GMR 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 percent plus 1 share of GMCAC’S outstanding capital stock.
“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,” edgar Saavedra, chairman and CEO of Megawide, said.
Megawide said it is strengthening its portfolio towards more cycle-resilient, scalable and higher growth segments.
the company initially bared its intention to build several transit-centric developments in key locations across the country and ride the information technology wave through its foray into data centers.