The Mactan Cebu International Airport – the Philippines’ second busiest airport – will have a new operator in 2024 following the current operator’s decision to leave the venture.
According to reports, Megawide Construction Corporation informed the Philippine Stock Exchange (PSE) that it signed a share subscription and transfer agreement with Aboitiz InfraCapital Inc. (AIC).
Subject to government approval, the infrastructure unit of the Aboitiz Group will acquire shares in the current developer and operator GMR-Megawide Cebu Airport Corporation (GMCAC) – a joint venture between Philippine-based Megawide and India-based GMR Airports International before taking full control of the airport.
With the complete deal worth around PHP 25 billion (~USD $440 million), the first part of the purchase will involve a third of GMCAC’s primary and secondary shares for PHP9.5 billion. Megawide and GMR would also be issuing PHP15.5 billion worth of exchangable notes which would mature on October 30, 2024, which would then be exchanged for the remaining shares in GMCAC.
GMR Megawide Cebu Airport Corporation maintains the 25-year concession to develop, operate, and maintain the Mactan Cebu Airport.
The deal will add the Mactan Cebu Airport to the Aboitiz Group portfolio, which currently includes the New Bohol-Panglao Airport and the Laguindingan Airport.
Megawide said the move to sell down stakes in GMCAC was in line with its strategy of constantly re-engineering its business and financial portfolio.
“We have always been open to partnerships that will enhance our capabilities and diversify our portfolio as an infrastructure innovator. The company’s thrust of being an infrastructure innovator remains on track with this deal as we harness synergies with other major participants in the field,” said Megawide chairman, CEO, and President Edgar Saavedra.
“We believe that we will be able to achieve our objectives with someone who shares the same vision, has a strong local presence, and embraces the same passion for infrastructure development and national progress. Aboitiz Infra has deep roots in Cebu and MCIA deserves another world-class, Cebuano company to sustain what GMCAC has built so far, and take it to the next level,” said Louie Ferrer, GMCAC president and Megawide’s executive director for Infrastructure Development.
Prior to the COVID-19 pandemic, the Mactan-Cebu Airport served over 12 million passengers. As the second busiest air hub of the Philippines, the airport serves domestic and international flights and is a hub for Philippine Airlines, Cebu Pacific, and AirAsia Philippines.
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