By Jenniffer B. Austria | Jun. 21,
2014 at 12:01am [ manilastandardtoday.com ]
Megaworld Corp. said Friday it
acquired a controlling stake in tourism estate developer Global Estate Resorts
Inc. from parent Alliance Global Group Inc. in exchange for shares in casino
operator Travellers International Hotel Group Inc.
Megaworld said in a statement it
increased its stake in GERI to 80.4 percent from 25.76 percent, signaling the
company’s venture into tourism sector.
Alliance Global Group Inc., the parent
company of Megaworld, said it completed the sale of 5.405 billion common shares
in GERI, which is equivalent to 49.2 percent, to Megaworld, for P10.43 billion.
Megaworld also acquired a 5.44-percent
interest in GERI from minority shareholders during a tender offer.
Meanwhile, Alliance Global acquired
Megaworld’s 1.125 billion common shares in Travellers International also for
P10.43 billion.
Megaworld executive director Kingson
Sian said Alliance Global acquired 1.125 billion shares in Travellers
International at P9.27 per share, which was Traveller’s closing price on
Thursday.
Prior to the transaction, Megaworld
owned about 9-percent stake in Travellers.
With the sale, Megaworld’s stake in Travellers will drop to less than 3
percent.
“Megaworld’s acquisition of GERI
signals our official entry to the country’s tourism industry,” Megaworld
chairman and chief executive Andrew Tan said.
Sian in an interview at the sidelines
of Megaworld’s annual stockholders meeting said GERI would remain listed with
the Philippine Stock Exchange and would explore plans to tap the debt market to
finance expansion projects.
Among the projects of GERI are the
1,149-hectare Twin Lakes in Tagaytay City, the 150-hectare Boracay Newcoast,
the 561-hectare Southwoods City and the 170-hectare Sta. Barbara Heights in
Iloilo.
The Sobrepeña group will remain a
minority shareholder in GERI with about 6-percent to 7-percent stake.
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