Megawide Construction Corp., led by tycoon Edgar Saavedra, has finalized the sale of its remaining shares in the Mactan-Cebu International Airport, marking a significant strategic shift for the company. The divestment, valued at P7.76 billion, was made to Aboitiz InfraCapital Inc., effectively transferring Megawide’s 33.33 percent plus one share in Aboitiz GMR Megawide Cebu Airport Corp., the airport’s operating entity. This move comes two years after Megawide first announced intentions to cede control of this key infrastructure asset.
The completion of this transaction is part of Megawide’s broader strategy to enhance liquidity and pivot toward property development. By relinquishing its stake in Cebu’s busy airport, which serves as the country’s second-busiest gateway, Megawide plans to concentrate on other business areas, such as real estate and its precast and construction solutions unit. The sale also aligns with the company’s focus on developing the Parañaque Integrated Terminal Exchange.
Megawide initially entered into a P25-billion agreement with Aboitiz InfraCapital in 2022, signaling its intent to gradually exit the airport management business. During this period, Megawide had also issued exchangeable notes to Aboitiz Infra worth P15.5 billion. These notes matured recently and were converted into the remaining shares in the airport venture, thereby facilitating the final stages of the divestment.
The divestment has had a positive impact on Megawide’s financial health. The company reported an improved debt-to-equity ratio, now at 1.9x compared to a previous high of 2.6x. This reduction in debt reliance is seen as a step toward greater financial stability and strategic flexibility.
Edgar Saavedra, Megawide’s CEO and Chairman, commented on the transaction, highlighting it as a natural progression for the firm. He underscored the company’s commitment to innovation in infrastructure and its competitive advantage within the industry. Saavedra emphasized the strategic importance of focusing on property development and construction solutions, areas where Megawide seeks to leverage its expertise and resources.
Earlier, Megawide’s involvement in the Mactan-Cebu International Airport began as a joint venture with GMR Group, under the entity Aboitiz GMR Megawide Cebu Airport Corp. The partnership was instrumental in the modernization and expansion of the airport, enhancing its capacity and services. The airport’s management and operation have significantly contributed to Megawide’s portfolio and reputation in infrastructure.
With the divestment completed, Aboitiz InfraCapital will now assume full control of the airport operations. This aligns with Aboitiz’s strategy to expand its footprint in the infrastructure sector, specifically in aviation, to contribute to the country’s economic development.