CITICORE Holdings Investments, Inc., the parent company of Megawide Construction Corp., said on Wednesday it had transferred a 14.67 percent stake in the latter to newly-incorporated Megacore Holdings, Inc. for a consideration of P5.68 billion.
Megacore is a new holding company formed to consolidate the economic stake of Megawide co-founder and president, Edgar Saavedra.
Post-transaction, Saavedra, thru Megacore and Citicore combined, will effectively own 40.17 percent of Megawide.
In the meantime, Citicore will reduce its stake in Megawide to 51 percent. Megawide Chairman Michael Cosiquien’s interest in Megawide remains consolidated thru Citicore.
“The transaction is strong proof of my confidence in Megawide. Twenty years ago, my former classmate, Michael Cosiquien, and I crafted the vision for Megawide to become one of the leading construction companies in the Philippines. After realizing this vision, we continue to challenge ourselves to transform the company into a diversified infrastructure and engineering conglomerate,” Saavedra said in a disclosure to the Philippine Stock Exchange.
“This restructuring enables us to maximize our resources and skill sets, enabling us to focus on areas where they are best utilized. There is much that Edgar and I have yet to explore and accomplish and this transaction is part of our innovation towards bigger and better things,” Cosiquien said.
Both Saavedra and Cosiquien aim to use Megawide’s core expertise in engineering procurement construction (EPC) to leverage its continuing diversification.
“In 20 years, we have managed to diversify our project portfolio to include not just private sector EPC projects but also public infrastructure. We’re even looking into projects abroad. There are numerous opportunities for synergy with other sectors and we want to maximize that,” Saavedra said.
Publicly listed in 2011, Megawide is among the country’s leading contractors for residential, office, and mixed-use developments.