Megaworld to get majority in GERI-A A +A
Sunday, May 11, 2014
MEGAWORLD announced it has agreed to purchase a 49.20-percent stake of Alliance Global Group, Inc. (AGI) in Global-Estate Resorts, Inc. (GERI) for a total purchase price of P10.43 billion.
The company, in a press statement, said it offered to buy the GERI shares at P1.93 per share based on the 30-day volume weighted average price (VWAP) of GERI shares as of April 30, 2014. The price is supported by a fairness opinion and valuation report issued by Navarro Amper & Co. (Deloitte).
After the acquisition, Megaworld will own 74.96 percent of GERI. The company will then initiate a mandatory tender offer for the remaining GERI shares held by minority
The acquisition is set to complete the consolidation of all real estate businesses of AGI under the Megaworld brand, enabling the company to capitalize on real estate opportunities and to capture the expected growth momentum of its real estate affiliates.
Last year, Megaworld has announced its acquisition of Suntrust Properties, Inc., making it a wholly-owned subsidiary of the real estate giant. The company also owns 82 percent of Empire East Land Holdings, Inc.
“We are excited that this consolidation will enable us to further capture the growth in the tourism sector through GERI’s projects. The exposure to the tourism industry will also complement our leadership position as the No. 1 landlord and developer of office spaces in the Philippines, specifically for information technology-business process outsourcing (IT-BPO) companies, which are considered key growth drivers of the Philippine economy in the next decade. The consolidation will also increase our landbank all over the Philippines to more than 3,900 hectares,” said Francisco Canuto, Megaworld’s chief finance officer. (PR)
Published in the Sun.Star Cebu newspaper on May 12, 2014.