Posted on May 09, 2014 08:55:49 PM [ manilastandardtoday.com ]
MEGAWORLD Corp. is completing
consolidation of the property business of tycoon Andrew L. Tan under one roof
in a move that began nearly a year ago, the company said in a statement
attached to a disclosure on Friday.
“Megaworld Corp. has agreed to purchase the 49.20% stake of Alliance
Global Group, Inc. in Global-Estate Resorts, Inc. (GERI) for... P10.43
billion,” the statement read.
Megaworld is buying 5.405-billion GERI
shares for P1.93 apiece “based on the 30-day volume weighted average price of
GERI shares as of April 30 April”, it added.
After acquisition, Megaworld will own
74.96% of GERI, the statement continued, adding this will trigger a mandatory
tender offer for remaining GERI shares held by minority stockholders.
Trading of shares of Alliance Global,
Megaworld and GERI was suspended for an hour on Friday “to give the investing
public sufficient time to digest the above-mentioned material information”.
“The acquisition will complete the
consolidation under Megaworld of all real estate businesses of Alliance Global
which will enable Megaworld to capitalize on real estate opportunities and
capture the expected growth momentum of its real estate affiliates,” the
statement explained.
Megaworld, which acquired 100% of
Suntrust Properties, Inc. last year, also owns 82% of Empire East Land
Holdings, Inc. It has more than 30 other subsidiaries and associates, including
fellow-listed Travellers International Hotel Group, Inc. which owns an
integrated resort complex in Newport City in Pasay City which consists of,
among others, hotels with fine dining restaurants, a performing arts theater
and a shopping mall.
“We are excited that this
consolidation will enable us to further capture the growth in the tourism
sector through GERI’s projects,” the statement quoted Francisco C. Canuto,
Megaworld’s chief finance officer, as saying.
GERI is focused on developing tourism
estates like the 150-hectare (ha) Boracay Newcoast on Boracay Island, the
1,149-ha Twin Lakes in Tagaytay City, the 34-ha Sta. Barbara Heights in Iloilo
City and the 561-ha Southwoods City at the boundary of Carmona, Cavite and
Biñan, Laguna.
Suntrust focuses on developing
residential, including condominium, projects both in and immediately south of
Metro Manila, while Empire East develops “affordable” single-detached houses
and condominiums, as well as offers commercial, industrial, parking and
residential space for lease in Metro Manila.
Megaworld itself is a developer of
residential condominiums and townships like Eastwood City in Quezon City;
Newport City in Pasay City; McKinley Hill, Uptown Bonifacio and Forbes Town
Center in Bonifacio Global City; The Mactan Newtown in Lapu-Lapu City, Cebu;
and Iloilo Business Park in Iloilo City.
It said last May 8 that it is spending
some P8 billion to build five luxury hotels that will provide an additional
2,000 room at the expanded 28.8-ha The Mactan Newtown. It added that it plans
to spend P30 billion to develop The Mactan Newtown in the next five to seven
years.
Megaworld grew net income by 22% to
P9.03 billion -- inclusive of a P760-million nonrecurring gain -- from P7.41
billion in 2012, as operating revenues climbed 19.91% to P32.333 billion from
P26.965 billion and operating expense rose 14.99% to P22.782 billion from
P19.813 billion.
On Friday, Megaworld’s shares gained
one centavo or 0.21% to close P4.68 apiece from the P4.67 each on Thursday,
those of parent Alliance Global rose 20 centavos or 0.66% to P30.40 from
P30.20, those of GERI went up two centavos or 1.01% to P2 from P1.98, those of
Empire East added one centavo of 1% to P1.01 from P1, while those of Travellers
increased by nine centavos or 0.92% to P9.85 from P9.76. -- KNML
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