Infrastructure company Megawide Construction Corp. said over the weekend it plans to venture into “pandemic-resilient” businesses, such as transport terminals, redevelopment of public markets and data centers, using the P15-billion proceeds from the sale of its stake in the airport terminal business.
Megawide president and chief executive Edgar Saavedra said in a briefing late Friday the sale of its stake in Mactan-Cebu International Airport would enable the company to build its war chest to accelerate the development of pipeline projects.
“We now have a war chest to fund our pipeline projects and pursue new opportunities,” Saavedra told reporters.
The group disclosed plans to build 10 transport bus terminals across the country over the next three years and forged partnership with a foreign group to roll out data centers.
It is also looking to bid for three more packages of the Metro Manila Subway project.
Megawide is also undertaking the construction of the Malolos-Clark Railway Project Package 1, Metro Manila Subway Contract Package 104 and the modernization of Cebu’s Carbon market district.
Megawide and Indian joint venture partner GMR Airports International on Friday announced they agreed to sell their interest in MCIA to the Aboitiz Group for P25 billion.
Saavedra said while Megawide exited the airport business, the company could always go back to the sector once travel returns to normal.
Saavedra said the company would only be interested in big airport projects like the Ninoy Aquino International Airport.
He said that aside from raising funds to finance pipeline projects, the sale its stake in MCIA would also reduce Megawide to reduce debt.
GMR-Megawide Cebu Airports Corp., the joint venture that operates MCIA, restructured P23.9-billion worth of debt in May 2021 as the pandemic wreaked havoc on the travel industry.
GMCAC started operating MCIA in 2014 after wining the project through a public bidding.
Daily traffic in MCIA went down down to 18,000 this year amid the pandemic, way below the pre-pandemic level of 35,000.
Domestic foot traffic could return to pre-pandemic level by the fourth quarter of 2022 while international traffic would go back to pre-pandemic level by the third quarter of 2023, according to industry projections.
Megawide incurred a net loss of P60 million in the first quarter, compared to a net income of P2.5 million a year ago. Net loss reached P342.9 million on P16.3-billion revenue last year.
Megawide raised P4 billion from the issuance of fixed-rate bonds, including the P1-billion oversubscription option in August.