Andrew Tan’s property firms to be consolidated under Megaworld

Megaworld has agreed to purchase the 49.20 percent stake of Alliance Global Group Inc. (AGI) in Global-Estate Resorts Inc. for P10.43-billion, the property developer said Friday.

 

The purchase price of the Global-Estate shares was pegged at P1.93 per share based on a 30-day volume weighted average price as of April 30, 2014. 

 

"The price is supported by a fairness opinion and valuation report issued by Navarro Amper & Co. (Deloitte)," Megaworld said in an-emailed statement.

 

With this acquisition, Megaworld will end up owning 74.96 percent of Global-Estate. "The company will then initiate a mandatory tender offer for the remaining Global-Estate shares held by minority stockholders," according to Megaworld.

 

"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," it added.

 

As a consolidated property company, Megaworld will also include wholly-owned Suntrust Properties Inc. and majority-owned Empire East Land Holdings Inc.

 

“We are excited that this consolidation will enable us to further capture the growth in the tourism sector through Global-Estate's projects... 

 

"The consolidation will also increase our landbank all over the Philippines to more than 3,900 hectares,” Francisco Canuto, Megaworld chief finance officer, said in the statement.

 

Among Global-Estate's tourism projects are the 150-hectare Boracay Newcoast in Boracay Island, the 1,149-hectare Twin Lakes in Tagaytay, the 170-hectare Sta. Barbara Heights in Iloilo, and the 561-hectare Southwoods City in the boundary of Carmona, Cavite and Biñan, Laguna. – VS, GMA News