Aboitiz InfraCapital, Inc. (AIC) is acquiring P9.5 billion worth of shares in GMR Megawide Cebu Airport Corporation (GMCAC), the developer and operator of the Mactan Cebu International Airport (MCIA).
AIC announced it has forged a landmark deal with Megawide Construction Corporation (Megawide) and GMR Airports International, B.V. (GAIBV) on Friday, September 2.
Megawide and GAIBV decided to bring the Aboitiz company into GMCAC to cement MCIA's status as the country's premier international airport.
AIC operates Mactan Economic Zone 2 (MEZ 2) Estate in Lapu-Lapu City and West Cebu Estate (WCE) in Balamban, Cebu.
AIC is acquiring a 33 and 1/3 percent 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.
In addition, GMCAC shall use a portion of the primary infusion to acquire certain identified entities providing services at MCIA.
Furthermore, Megawide and GAIBV have agreed to issue exchangeable notes to AIC for the aggregate amount of P 15.5 billion.
The exchangeable notes will mature on 30 October 2024, and will be exchanged by AIC for the remaining 66 and 2/3 percenr 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 the airport welcomed more than 2 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.
“We, at Aboitiz InfraCapital are happy to partner with GMR-Megawide for the continued growth and development of the Mactan-Cebu International Airport," says AIC President and CEO Cosette Canilao.
"The GMR-Megawide Consortium has significantly expanded 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,” she pointed out.
“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 Data Science and Artificial Intelligence thru Aboitiz Data Innovation (ADI) in tech-up the airport’s operations," according to Canilao.
The transaction is subject to the satisfaction of customary closing conditions including requisite third party and regulatory approvals.
AlphaPrimus Advisors acted as financial advisor to, and Gulapa Law as legal counsel for, AIC in this transaction.