SSS buys 5.17% stake in Megawide for

The Social Security System (SSS) has acquired a 5.17 percent stake in diversified engineering and infrastructure conglomerate Megawide Construction Corporation (Megawide) worth about P2 billion.

The SSS announced that it had acquired a total of 110.53 million Megawide shares as it eyes participation in the booming infrastructure sector given the government’s focus on its flagship Build, Build, Build program.

According to SSS Chairman Amado Valdez, their entry into Megawide is an opportunity to maximize the returns on the institution’s investments.

“Our entry into Megawide is highly strategic. We see investments in the infrastructure sector as viable, given the level of funding being poured by the public and private sectors into the infrastructure drive and the volume of projects across the country,” said Valdez.

He added that “we are mandated to secure robust and recurring sources of revenues to finance and support the pension of our beneficiaries. We are confident in Edgar’s vision for Megawide and the continuing progress of our infrastructure sector.”

Megawide Chairman Edgar Saavedra said “it is encouraging that the SSS, the country’s biggest pension fund, is willing to invest in Megawide. It is an outstanding vote of confidence in the company’s vision, and we are motivated to work even harder so that we can deliver positive returns for all our stakeholders.”

As a long-term institutional investor of public funds, the SSS is renowned for its adherence to strict investment guidelines and commitment to transparency, corporate governance, and compliance.

According to Saavedra, it is this identity that motivated the company to extend SSS an invitation to be part of its governing board.

“SSS is a public fund and their intention is to ensure solid returns for the hard-earned money of millions of hard-working Filipinos. In consideration of who they represent, we felt that they should have a bigger voice in the company,” he said. Megawide announced that the board seat will be filled by SSS Commissioner Jose Gabriel M. La Viña.

The SSS bought a 3.5 percent stake in Megawide at 17.88 a share for a total cost of P1.32 billion from Saavedra’s Megacore Holdings Inc. The fund also bought more shares from the open market.