MANILA, Philippines—Construction and engineering firm Megawide Corp. has completed the acquisition of a company that owns a property in Taytay, Rizal where its P1-billion one-stop pre-cast concrete manufacturing facility will rise.
In a disclosure to the Philippine Stock Exchange on Thursday, Megawide said it had executed its takeover of Altria East Land, making the latter its wholly owned subsidiary.
Megawide has some common shareholders with the previous owners of Altria East. Its chair Michael Cosiquien and president Edgar Saavedra together owned 40 percent of Altria’s issued and outstanding capital prior to this transaction.
The construction firm bought 100 percent of the issued and outstanding capital stock of Altria East for P53 million. On top of this, all the existing advances in the books of Altria in the amount of P252 million were assigned to Megawide.
With this transaction, Megawide will henceforth be able to book Altria’s 10-hectare Taytay property as part of its asset base instead of paying rent.
It was earlier reported that the main reason for purchasing the property was for Megawide to save on expenses. As the pre-cast manufacturing Megawide will run for at least 30 years, renting the property, especially with the expected escalation of rates, is seen otherwise more expensive for Megawide.
The manufacturing plant, which is targeted for completion in 2013, is envisioned to be the first of its kind in the country and one of the largest pre-cast manufacturing facilities in the region.