MANILA, Philippines — Megawide Construction Corp. has taken full ownership of Walter Mart’s WM Property Management Inc. (WMPMI) in a bid to boost its foothold in the transportation infrastructure industry.
Megawide announced it took 100 percent ownership of the property management firm by buying 344.5 million shares from various stockholders of WMPMI for P344.1 million.
“Megawide decided to acquire the said shares because it sees the potential in the transportation infrastructure industry and believes that the Parañaque Integrated Terminal Exchange (PITx) project is consistent with its philosophy of engineering a first world Philippines. Further, all the profit from the PITx will accrue in favor of Megawide,” the listed company said.
The PITx is a joint venture project of Megawide and WMPMI after bagging the contract under the public-private partnership program during the previous administration.
“The shareholders of WMPMI’s core competency lies in property management instead of transportation infrastructure. In order to focus on the same, the shareholders have divested all of their shares in WMPMI in favor of Megawide,” the construction company said.
Megawide said the acquisition was made through a straight sale and was financed through a special purpose vehicle and equity was obtained through internal cash.
WMPMI is a corporation engaged in the business of providing property management services, either directly or through third parties.
These services include rent collection, tenant and lease management, marketing and advertising, repair and maintenance, liaison and other similar services for buildings, malls, shopping centers, amusement centers, cinemas or other recreational places, hotels, apartments, dwellings, condominium projects, townhouse projects, shops, counters, plants, warehouses, parking areas and such other structures or improvements under administration, including installations, equipment, machines, vehicles, facilities, and other accessories and appurtenances.
Megawide, meanwhile, is a listed engineering and construction conglomerate.
The company operates the Mactan-Cebu International Airport in partnership with GMR Infrastructure Ltd. of India took over operations of the MCIA in November 2014.