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Megawide buys out landowner of new facility

    Published : Monday, November 07, 2011 00:00 [ ]

MEGAWIDE Construction Corp. has entered into a share-swap transaction with the company that owns the property where its pre-cast manufacturing plant will be constructed.

Louie Ferrer, Megawide vice president, said the construction firm decided to acquire Altria East Land Inc. instead of leasing the land from the owner.

Megawide will come out this week with the final terms of the transaction, he added.

In January, the company raised P2.29 billion from the country’s biggest all-domestic maiden share sale to finance the construction of a world-class pre-cast manufacturing plant, which will support Megawide’s planned venture into mass housing and infrastructure.

The facility will be built on a 10-hectare property in Taytay, Rizal.

The company earlier said it would bid for contracts of the Department of Public Works and Highways in the P1 billion to P5 billion range, generating new revenue streams to support long-term growth.

The firm had said it expects to sustain its annual compounded growth of 200 percent in the next two or three years because of its backlog and annual contracts valued at P5 billion to P6 billion.

Megawide had raised its profit guidance to P750 million to P800 million by year-end, or 2.5 times more than the P335 million posted in 2010. This is higher than the initial full-year guidance of P560 million the company issued during its maiden share sale in February.

The firm’s net income surged 122 percent to P209.66 million in the first half on the back of higher bookings and operating efficiency.

Its shares were unchanged at P8.20 each on Friday.

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