Megaworld closes airport deal

REPORT FROM BUSINESSWORLD ANDREW TAN-led property developer Megaworld Corp. has closed the P1.2-billion deal involving the acquisition of the old airport in Iloilo. In a disclosure to the Philippine Stock Exchange on Monday, Megaworld said the 54.5-hectare property in Mandurriao, Iloilo City, was bought in cash. Following the purchase of the lot, Megaworld said, it would apply for a license with the Philippine Economic Zone Authority. The company said it planned to convert the property into a business district. "Megaworld envisions its project to become a magnet for major business process outsourcing (BPO) companies interested to set up shop in the Visayas region," the company said. It added that the property would also host educational facilities "geared to provide value-added training to equip prospective employees with the necessary skills suited to the requirements of the call centers and other BPO businesses" in the development. Megaworld acquired the Iloilo property through a negotiated sale after the Finance department failed to sell the property through a public bidding early this year. Interested parties had noted that the P1.2-billion floor price set by the government had been too high, and the government reduced this to P900 million. The property was among the assets that the government had set to dispose this year to help plug the budget shortfall. Also to be sold is a 60% stake in geothermal company Philippine National Oil Co.-Energy Development Corp. (PNOC-EDC) scheduled to be privatized next month. For next year, the state plans to sell its shareholdings in Manila Electric Co., Philippine National Oil Co.-Exploration Corp., and San Miguel Corp. The government plans to raise a total of P105 billion from the sale of the San Miguel and PNOC-EDC shares and another P5 billion from the sale of the Meralco shares. Ahead of the announcement, Megaworld shares closed at P3.85 apiece, up from Friday’s P3.45.