SEC okays Megawide P7B preferred share sale
MANILA, Philippines – The Securities and Exchange Commission (SEC) has approved en banc the P7-billion ($155.35 million*) preferred shares offering of listed construction firm Megawide Construction Corporation.
As approved by the SEC, Megawide will offer up to 70 million preferred shares priced at P100 ($2.22) per share, including 30 million preferred to cover overallotment.
Megawide tapped BPI Capital Corporation and Standard Chartered Bank to be underwriters for the offering.
Proceeds from this fund raising activity will be used to partially finance its ongoing infrastructure projects, including the P17.5-billion Mactan-Cebu International Airport projects, the two schools project, and the modernization and maintenance of the 700-bed of the Philippine Orthopedic Hospital.
The preferred shares will be listed with the Philippine Stock Exchange.
Megawide said it will continue to bid for other infrastructure projects under the public-private partnership (PPP) scheme.
In line with the company’s thrust to expand into infrastructure development, the company is also venturing into power generation.
In the next 3 years, the company aims to put up a portfolio of 200 megawatt (MW) of power generation assets.
To date, Megawide is working on a total of 100MW of renewable energy at various stage of development. The company previously said that it plans to spend $100 million to build the first 100MW of renewable energy that includes biomass, hydro, wind, solar, and geothermal projects.
Megawide-GMR denies passenger service charge hike
Megawide, in tandem with Bangalore, India-based GMR Infrastructure denied reports that the increase in passenger service charge (PSC) or terminal fee at the Mactan-Cebu Airport is due to their alleged lack of funds.
In a statement released Friday, November 7, Oliver Tan, a GMR-Megawide Cebu Airport Corporation (GMCAC) board director said the accusation – that GMCAC is increasing terminal fees to fund expansion and cover operating cost – is absolutely false and malicious.
“GMCAC is investing additional P16 billion ($355.04 million), on top of the P16 billion ($355.04 million) it spent for the premium or concession rights to fund the construction of Terminal 2.
GMCAC added that the increase in terminal fee was part of the concession agreement made by the Mactan-Cebu International Airport Authority (MCIAA) and the Department of Transportation and Communications (DOTC) to all bidders of the project.
“It is not a special arrangement or privilege afforded to GMCAC,” Louie Ferrer, GMCAC president said.
Terminal operations of the Mactan-Cebu Airport were officially handed over to GMCAC on November 1, 2014. (READ: Gov’t turns over Mactan airport to Megawide-led consortium)
GMCAC added it is keen on fortifying Cebu’s position as the country’s most popular destination and that they have been making improvements from Day 1 of the hand-over to make the Mactan-Cebu International Airport the “friendliest gateway.” – Rappler.com
*$1 = P45.06