Megawide buying out Indian partner in Clark Int’l Airport joint venture

Engineering magnate Edgar Saavedra’s Megawide Construction Corp. is buying out the stakes of its Indian multinational conglomerate partner, GMR Group, to fully acquire the company which developed the Clark International Airport.

In two separate disclosures to the Philippine Stock Exchange on Friday, Megawide said it inked share purchase agreements with GMR Infrastructure (Singapore) Pte Ltd and GMR Global Pte Ltd to acquire the firms’ respective 45% and 5% stakes in Megawide GMR Construction JV Inc.

Megawide GMR, the joint venture company between Saavedra’s Megawide and GMR Group, is the developer of the Clark International Airport.

Megawide is buying out 81,000,003 equity shares (45%) in Megawide GMR of GMR Infrastructure for P70.839 million.

The company is also acquiring GMR Global’s 9,000,000 equity shares in the joint venture for P7.871 million.

As a result of the acquisitions, Megawide GMR will become a wholly-owned subsidiary of Megawide.

“The transaction is in line with the company’s strategy of constantly re-engineering its business and financial portfolio to support its vision of engineering a First-World Philippines and to explore more resilient, high growth, and scalable opportunities to anchor its long-term and sustainable growth agenda,” the company said. — BAP, GMA Integrated News