CONSTRUCTION and engineering firm Megawide Construction Corp. is raising P2.2 billion from the sale of treasury shares, placing out some of the shares previously bought back from the family of tycoon Henry Sy Sr.
Megawide has signed an agreement to offer and sell 150 million common shares held in treasury at a price of P14.90 per share, the company disclosed to the Philippine Stock Exchange on Friday.
The offer was priced at a discount of 4.7 percent from the closing price of P15.64 per share at the local stock market on Oct. 27, the day that a placing agreement was signed with CLSA Ltd. as sole coordinator and sole book runner and First Metro Investment Corp. as domestic manager.
The sale will be done through an accelerated overnight equity placement with settlement expected to be on Nov. 4, raising P2.2 billion in gross proceeds.
“The proceeds of the placement will be used for partial repayment of the bridge loan availed for the purchase of Megawide common shares from Sybase Equity Investments,” the disclosure said.