The state-owned Social Security System has gained a foothold in infrastructure group Megawide Construction Corp. with the recent purchase of shares worth around P1.32 billion from a controlling shareholder.
The buy-in deal was equivalent to a 3.5-percent stake and in line with the SSS’ plan to invest in infrastructure-building, said Megawide chair Edgar Saavedra, who sold the shares to the state pension fund.
In a disclosure to the Philippine Stock Exchange on Friday, Saavedra’s holding company Megacore Holdings Inc. said it had sold 73.83 million shares at P17.88 a share.
In a phone interview, Saavedra said the stake was sold to the SSS, which had long been requesting to buy shares in Megawide.
Apart from the shares bought from Megacore, the SSS has likewise been picking up shares of Megawide from the open market.
Following this transaction, Saavedra said he has agreed to give the SSS a board representation in the seven-member board.
Theoretically, Saavedra said the shares held by SSS in Megawide were still too small to buy a board seat. However, he said he had agreed to give one board seat as a special accommodation.