Megaworld raises stake in Global Estate to 80%, buys 49% from parent Alliance Global

Megaworld Corp. is intent on having a stake in the tourism industry, raising its equity in developer Global Estate Resorts Inc. to 80.4 percent from 25.76 percent.

 

Parent Alliance Global Group Inc. sold its 5.405 billion common shares equivalent to 49.2 percent in Global Estate to Megaworld for P10.43 billion, Andrew Tan-led Megaworld said in an e-mailed statement Friday.

 

Megaworld also bought the 5.44 percent equity in Global Estate – held by minority shareholders – during a tender offer.

 

All told the Tan-led property developer was able to accumulate more than 80 percent shareholdings in Global Estate.

 

“Megaworld’s acquisition of GERI signals our official entry to the country’s tourism industry,” said chairman and CEO Tan. "We will be bringing the 25-year expertise of Megaworld in mixed-use developments which we call ‘townships’ to the projects of GERI,” Tan noted.

 

On the sidelines of Megaworld's stockholders' meeting Thursday, executive director Kingson Sian told reporters Global Estate will stay as a listed company on the Philippine Stock Exchange. The tourism estate developer intends tap the debt market to finance its projects, Sian added. – With Janelle Cosino/VS, GMA News