Real-estate developer Megaworld Corp. is set to acquire the majority stake in Global-Estate Resorts Inc. (Geri), the upscale leisure developer, to put all of Andrew Tan’s property assets under one roof although, they will continue to operate as separate units.
Megaworld said in a regulatory filing, it agreed to purchase 49.2 percent of Geri from the company’s parent Alliance Global Group Inc. for a total consideration of P10.43 billion.
The company bought Geri for P1.93 per share, which was based on its 30-day volume weighted average price as of April 30.
“The price is supported by a fairness opinion-and-valuation report issued by Navarro Amper and Co. [Deloitte],” the company said in a statement.
After the transaction pushes through, Megaworld will own 74.96 percent of Geri. The company will then initiate a mandatory tender offer to acquire the balance of the shares.
According to the Philippine Stock Exchange, Geri is still 8.81-percent owned by Fil-Estate Realty Associates Inc., with the rest owned by the general public.
“The acquisition is set to complete the consolidation of all the real-estate businesses of AGI under the Megaworld brand, enabling the company to capitalize on real-estate opportunities and to capture the expected growth momentum of its real-estate affiliates,” the company said.
Unlike other property firms that merged its assets into one big company, Megaworld simply wanted to put under one roof Andrew Tan’s property development assets although they will continue to operate as separate units.
The companies include Empire East Land Holdings Inc. and Suntrust Properties Inc., each with its own management team.
Megaworld owns all of Suntrust and 82 percent of Empire East.
“The consolidation will also increase our land bank all over the Philippines to more than 3,900 hectares,” Megaworld’s Francisco Canuto, chief finance officer, said.
GERI was behind the development of so-called tourism estates as the 150-hectare Boracay Newcoast on Boracay Island, the 1,149-hectare Twin Lakes project in Tagaytay, the 170-hectare Sta. Barbara Heights in Iloilo and the 561-hectare Southwoods City straddling the boundary of Carmona, Cavite and Biñan, Laguna.
Megaworld is known for its township project developments across the Philippines.
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