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Aboitiz InfraCapital signs deal with GMR-Megawide for GMCAC, the developer and operator of Mactan Cebu International Airport

Press Release

September 2, 2022

(Not in photo) GMR Airports Chairman Mr. Srinivas Bommidala, (from L-R) GMR Megawide Cebu Airport Corporation Chief Executive Advisor Mr. Andrew Harrison, GMR Megawide Cebu Airport Corporation President Mr. Louie Ferrer, and Megawide Construction Corp. Chairman & CEO Mr. Edgar Saavedra signed the landmark deal with Aboitiz InfraCapital, Inc. President and CEO Ms. Cosette Canilao and Aboitiz Group President & CEO Mr. Sabin Aboitiz earlier this morning, September 2, 2022.

Aboitiz InfraCapital, Inc. (AIC) has entered into a landmark deal with Megawide Construction Corporation (Megawide) and GMR Airports International, B.V. (GAIBV) for AIC to acquire shares in GMR Megawide Cebu Airport Corporation (GMCAC), the developer and operator of the award-winning Mactan Cebu International Airport (MCIA).

After several months of deliberations, Megawide and GAIBV are bringing Aboitiz into GMCAC as a strong and reputable investor with deep roots in Cebu to propel MCIA to the next level and establish its status as the Philippines’ premier international airport. AIC operates Mactan Economic Zone 2 (MEZ 2) Estate in Lapu-Lapu City and West Cebu Estate (WCE) in Balamban, Cebu.

AIC is acquiring a 33 and 1/3% minus 1 share stake in GMCAC through a combination of a primary infusion and secondary purchase of shares from Megawide and GAIBV for a total consideration of PhP 9.5 billion. In addition, GMCAC shall utilize a portion of the primary infusion to acquire certain identified entities providing services at MCIA.

Simultaneously with the execution of the above transaction, Megawide and GAIBV have agreed to issue exchangeable notes to AIC for the aggregate amount of PhP 15.5 billion. The exchangeable notes will mature on 30 October 2024, and will be exchanged by AIC for the remaining 66 and 2/3 % plus 1 share of GMCAC’s outstanding capital stock. GMR Infrastructure Limited will continue to provide support as the Technical Services Provider to GMCAC.

The investment is a vote of confidence for the travel sector, which has been steadily improving in the past few months. Latest MCIA statistics show that it welcomed more than 2 million passengers during the first half of 2022, a 350% increase versus the 470,000 passengers in the same period of the previous year. 

“We at Aboitiz InfraCapital are happy to partner with GMR-Megawide for the continued growth and development of the Mactan-Cebu International Airport. The GMR-Megawide Consortium has done a tremendous job by significantly expanding the airport over the pre-pandemic years – almost tripling passenger traffic in five years. This is quite an accomplishment in setting up a solid foundation for the future.”

– AIC President and CEO Cosette Canilao

“Part of the larger Aboitiz Group’s push to transform into a Techglomerate is to infuse and leverage the group’s relationships and assets as well as explore utilizing Data Science and Artificial Intelligence thru Aboitiz Data Innovation (ADI) to tech-up the airport’s operations. We are excited to take MCIA to new heights which will bring in more progress to the province, region, and country,” she explained.

The transaction is subject to the satisfaction of customary closing conditions including requisite third party and regulatory approvals.

AlphaPrimus Advisors acted as financial advisor to, and Gulapa Law as legal counsel for, AIC in this transaction. IATA served as the air traffic advisor for this transaction.

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