Global Estate Resorts consolidated into Megaworld
MANILA—Real estate tycoon Andrew Tan has completed the consolidation of property businesses under flagship Megaworld Corp. with the latter’s takeover of a controlling stake in the group’s leisure estate arm Global-Estate Resorts Inc. (GERI).
In a disclosure to the Philippine Stock Exchange on Friday, the group announced that Megaworld would purchase the 49.2 percent stake in GERI held by parent conglomerate Alliance Global Group Inc. for P10.43 billion or P1.93 per share.
After the acquisition, Megaworld will own 74.96 percent of GERI. Megaworld will also initiate a mandatory tender offer for the remaining GERI shares held by minority stockholders.
The group said this acquisition would complete the consolidation under Megaworld of all real estate businesses of AGI, enabling Megaworld to “capitalize on real estate opportunities and capture the expected growth momentum of its real estate affiliates.”
Megaworld offered to purchase the GERI shares at P1.93 per share based on the 30- day volume weighted average price of GERI shares as of April 30, 2014. The price is supported by a fairness opinion and valuation report issued by Navarro Amper & Co. (Deloitte), the company said.
GERI is a leading tourism estate developer in the country. Its projects include the 150-hectare Boracay Newcoast on Boracay Island; the 1,149-hectare Twin Lakes in Tagaytay; the 34-hectare Sta. Barbara Heights in Iloilo City and the 561-hectare Southwoods City on the boundary of Carmona, Cavite, and Binan, Laguna, which is being developed into a fully integrated master-planned township development.
Megaworld, on the other hand, is a leading residential condominium developer and pioneer of townships in the country which include Eastwood City in Quezon City, which is the country’s first cyberpark; Newport City in Pasay City; McKinley Hill, Uptown Bonifacio and Forbes Town Center in Bonifacio Global City; The Mactan Newtown in Lapu-Lapu City, Cebu; and the Iloilo Business Park in Iloilo City. It is also a leading office landlord and developer in the Philippines today with around 712,000 square meters of office space.
Aside from owning a controlling stake in GERI, Megaworld already owns 82 percent of Empire East Land Holdings and 100 percent of Suntrust Properties Inc.
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