Thursday, September 3, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
MEGAWORLD CORP. is poised to emerge the winning bidder for an 8.38-hectare military property in Taguig City if its revised offer successfully hurdles a final verification process this week, the Bases Conversion and Development Authority (BCDA) yesterday said.
The Tan-led developer raised its initial bid of P2.7891 billion to P3.1511 billion, edging out Robinson Land Corp.’s P3.1507-billion counter-offer, BCDA Vice-President Aileen R. Zosa told reporters in a briefing.
The revised amount, adjusted to reflect present values, will consist of a P1.062-billion upfront cash payment and at least P306.616 million in secured revenues payable every year for 12 years, Ms. Zosa said.
Megaworld confirmed this in a statement yesterday, adding that cash resources amounting to over P15 billion will enable it to finance payments.
Megaworld’s submission of an unsolicited offer last year gave it the privilege to win the bidding if it is able to match other firms’ counter-offers.
The revised offer will need to pass a "post-qualification stage" this week before Megaworld is officially declared the winner on September 10, Ms. Zosa said.
"We will check their documents if they are financially capable," she added, but noted that large corporations rarely fail the BCDA’s verification process.
If all goes well, the contract signing and turnover of the property will be staged on October 8. On this date, Megaworld will need to pay the P1.062-billion upfront payment, P700 million of which has already been surrendered to the BCDA as bidding security.
"We remain fully optimistic about the long-term development potential of the property and firmly committed to the Bonifacio Global City as the upcoming premier central business district in the country," Megaworld Chairman and Chief Executive Officer Andrew L. Tan said in the statement.
Megaworld noted further that its cash resources amounted to P15.7 billion at the end of the first half. Back in February, the firm raised P1.4 billion from a corporate note issue and said it expects to generate another P9 billion in the next three years from a pre-emptive rights offer.
For North Bonifacio, Megaworld plans to develop most of the area into residential spaces with some commercial and office spaces. The firm has committed to sink in at least P20 billion to develop the property.
Megaworld shares closed at P1.48 apiece yesterday, up 3.87% from Tuesday. — Jessica Anne D. Hermosa
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