Megaworld Corp., the Andrew Tan-led conglomerate, has decided to merge all its major real estate businesses in one giant real estate company.
In a filing with the Philippine Stock Exchange on Friday, the company disclosed that Alliance Global Group Inc. (AGI) has agreed to sell its entire stake in Global Estate Resorts (GERI) to its property arm Megaworld Corp.
AGI wanted to sell a total of 49.20 percent stake in GERI to Megaworld for a total purchase price of P10.43 billion, or P1.93 per share, based on the 30-day volume weighted average price (VWAP) of GERI shares as of April 30.
GERI is one of AGI’s subsidiaries, with a business focus on tourism estate development.
“The acquisition will complete the consolidation under Megaworld of all the real estate businesses of AGI, which will enable Megaworld to capitalize on real estate opportunities and capture the expected growth momentum of its real estate affiliates,” Megaworld told the local bourse.
The price is supported by a fairness opinion and valuation report issued by Navarro Amper & Co. (Deloitte), it added.
After the acquisition, Megaworld will own 74.96 percent of GERI and will initiate a mandatory tender offer for the remaining GERI shares held by minority stockholders
“We are excited that this consolidation will enable us to further capture the growth in the tourism sector thru GERI’s projects,” Megaworld chief financial officer Francis Canuto said.