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Property firm acquired

Posted on December 27, 2012 10:34:13 PM [ BusinessWorld Online ]
LISTED BUILDER Megawide Construction Corp. has carried out its planned complete acquisition of real estate firm Altria East Land, Inc., turning the latter -- which owns the land on which Megawide’s plant is built -- into its wholly owned subsidiary, Megawide said in a disclosure yesterday.
“Pursuant to the memorandum of agreement executed on Dec. 17 by and between Megawide and Altria and as disclosed to the Philippine Stock Exchange on the same date, the company today (Dec. 26) executed the appropriate sale and transfer documents acquiring 100% of the issued and outstanding capital stock of Altria from its (Altria’s) existing shareholders, making Altria its (Megawide’s) wholly-owned subsidiary,” the disclosure read.
Last Dec. 17, Megawide announced that it signed a memorandum of agreement with Altria acquiring all the latter’s total issued and outstanding capital stock for P53 million, in a move that finalized the acquisition that was first disclosed to the stock exchange in November last year.
Altria owns a 12 hectare property in Taytay, Rizal, which is being leased by Megawide for its existing pre-cast concrete manufacturing complex.
The pre-cast plant, which is fully automated and is touted as one of the largest in the country, enables the firm to handle larger projects and order volumes at a shorter construction time, and expand and diversify into other infrastructure ventures, Megawide said in its 2011 annual report.
The plant enables Megawide to offer precast walls, columns, beams, and hollow-core slabs for condominium buildings as well as girders for roads, bridges, and flyovers, the same report read.
Prior to the purchase, Michael C. Cosiquien, Megawide chairman and chief executive officer, and Edgar B. Saavedra, Megawide chief operating officer and president, jointly owned 40% of Altria’s issued and outstanding capital, Megawide said earlier this month.
Megawide, incorporated in 2004, is primarily engaged in site development, earthworks, structural and civil works, masonry works, architectural finishes, electrical works, plumbing and sanitary works, fire protection works, and mechanical works.
It holds an AAA construction license issued by the Philippine Contractors Accreditation Board, making the firm eligible to participate in big-ticket private infrastructure projects, according to the company’s Web site.
Megawide’s partnership with Citicore Holdings Investment, Inc. is one of the two consortia that bagged the contract for the P16.42-billion first phase of the government’s Public-Private Partnership for School Infrastructure Project (PSIP) last September. The project involves construction of roughly 9,300 classrooms in Regions I, III, and IV-A. The company early this month signed a loan agreement with PNB Capital & Investment Corp. for seven-year, fixed-rate corporate notes worth P6.5 billion to bankroll the PSIP.
 Megawide grew its net profit by 77.36% to P633.50 million as of September from P357.18 million in the same nine months last year.
In the same comparative periods, contract revenues climbed 23.57% to P5.61 billion from P4.54 billion, while contract costs rose 20.88% to P4.69 billion from P3.88 billion.
“The increase in contract revenues and its corresponding costs is mainly due to the following new projects: Linear, Studio City and Studio Zen of Filinvest Land, Inc. and Jazz Phase 2 and Grass Tower 2 of SM Development Corp.,” Megawide said in its end-September financial report.
Megawide shares were traded yesterday at P18.40 apiece, unchanged from their close on Wednesday. -- FJGDLF            
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