Megawide: PH1 deal gets investor nod

By VG Cabuag @villygc

Shareholders of Megawide Construction Corp. on Wednesday approved the acquisition of its affiliate Ph1 World developers Inc. from its parent firm Citicore holdings Investments Inc.

Megawide will acquire Ph1 World developers for P5.2 billion.

Megawide Chairman edgar sa avedra said the acquisition of Ph1 World developers will position the company in the affordable housing market, while enhancing the company’s operation results.

“In comparison to the construction business, if you do a development you get a higher topline, and higher percentage in the bottomline.” sa avedra also noted the resilience of the housing sector during the pandemic.

“The residential (market) remains to be more resilient, even during pandemics, especially if you look at the affordable segment market,” he said.

Megawide said the purchase price for Ph1 was arrived 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.”

By Lorenz S. Marasigan @lorenzmarasigan

Ph1’s income last year grew by more than eight times to P66.77 million from the previous year’s P7.9 million.

r e venues, which mostly come from real estate sales, reached P599.77 million, up by almost double from the previous year’s P311.42 million.

The company sells residential condominium units under its The hive project located at san Isidro street, or tigas avenue ex tension in Taytay, r i zal which consists of Towers a B, C and d Construction of Towers a , B and C were completed on december 31, 2022, while the construction of Tower d is 98 percent completed as of end-2022.

The company also has an ongoing project called My enzo l ofts located at Timog ave. in Quezon City.

“The acquisition of Ph1 is part of Megawide’s business strategy for forward integration. The acquisition is expected to result in the reduction of Megawide’s production costs and improvement the Megawide group’s efficiency,” the company said.

“Megawide acknowledges that real estate development is a natural progression for construction companies. such forward integration to real estate is expected to create more value within the Megawide Group.” at a parent level, the acquisition will be considered as an investment in a subsidiary while at a consolidated level, it will be a line-by-line takeup.

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