Construction and engineering firm Megawide Construction Corp. is venturing into residential development with the acquisition of PH1 World Developers Inc. for P5.2 billion.
Megawide said Wednesday its board of directors approved the acquisition of 100-percent stake in PH1, the property arm of parent firm Citicore Holdings Investments Inc.
Megawide said it finalized acquisition price after a careful deliberation by the company and valuation study of PH1 in accordance with the 2022 International Valuation Standards.
“Based on the fairness opinion report issued by FTI Consulting Philippines Inc. on the transaction, the purchase price is fair from a financial point of view,” Megawide said in a disclosure to the stock exchange.
Megawide said it would present the acquisition for shareholders’ approval during the annual stockholders meeting on July 12, 2023.
PH1 is building two high-rise projects on Ortigas Ave. in Taytay, Rizal and Quezon City and two soon-to-rise house-and-lot developments in San Jose de Monte City in Bulacan and Trece Martires in Cavite.
The Philippine Stock Exchange suspended the trading of Megawide following the disclosure.
“After a careful review of the disclosure submitted by the company, the exchange deems that the foregoing transaction is covered by the Rule on Disclosure for Substantial Acquisitions and Reverse Takeovers under Section 5, Article VII of the Consolidated Listing and Disclosure Rules of the Exchange,” the PSE said.
Megawide’s shares will remain suspended pending submission of the requisite comprehensive disclosure on the transaction.
Its share price closed at P3.29 Tuesday.