MINERVA BC NEWMAN
LAPULAPU CITY — Aboitiz InfraCapital, Inc. (AIC) entered into a landmark deal with Megawide Construction Corporation (Megawide) and GMR Airports International, B.V. (GAIBV) for AIC to acquire shares in GMR Megawide Cebu Airport Corporation (GMCAC), the developer and operator of the Mactan Cebu International Airport (MCIA).
“We at Aboitiz InfraCapital are happy to partner with GMR-Megawide for the continued growth and development of the Mactan-Cebu International Airport. The GMR-Megawide Consortium has done a tremendous job by significantly expanding the airport over the pre-pandemic years – almost tripling passenger traffic in five years. This is quite an accomplishment in setting up a solid foundation for the future,” AIC President and CEO Cosette Canilao said.
Canilao went on that part of the larger Aboitiz Group’s push to transform into a Techglomerate is to infuse and leverage the group’s relationships and assets as well as explore utilizing Data Science and Artificial Intelligence thru Aboitiz Data Innovation (ADI) to tech-up the airport’s operations.
AIC is acquiring a 33 and 1/3% minus 1 share stake in GMCAC through a combination of a primary infusion and secondary purchase of shares from Megawide and GAIBV for a total consideration of PhP 9.5 billion. GMCAC shall utilize a portion of the primary infusion to acquire certain identified entities providing services at MCIA.
Simultaneously with the execution of the above transaction, Megawide and GAIBV have agreed to issue exchangeable notes to AIC for the aggregate amount of PhP15.5 billion. The exchangeable notes will mature on 30 October 2024, and will be exchanged by AIC for the remaining 66 and 2/3 percent plus 1 share of GMCAC’s outstanding capital stock.
GMR Infrastructure Limited will continue to provide support as the Technical Services Provider to GMCAC.
The investment is a vote of confidence for the travel sector, which has been steadily improving in the past few months. Latest MCIA statistics show that it welcomed more than two million passengers during the first half of 2022, a 350 percent increase versus the 470,000 passengers in the same period of the previous year.
Megawide and GAIBV are bringing Aboitiz into GMCAC as a strong and reputable investor with deep roots in Cebu to propel MCIA to the next level and establish its status as the Philippines’ premier international airport. AIC operates Mactan Economic Zone 2 (MEZ 2) Estate in Lapu-Lapu City and West Cebu Estate (WCE) in Balamban, Cebu.
“We are excited to take MCIA to new heights which will bring in more progress to the province, region, and country,” Canilao added.