THE Government Service Insurance System (GSIS) has increased its stake in Megawide Construction Corp. to 9.5% after acquiring 111.94 million common shares through a series of block transactions, making the state pension fund one in every of the listed engineering and construction company’s major local institutional investors.
The acquisition increased GSIS’ holdings to 191.71 million common shares, Megawide said in a press release on Wednesday.
“The investment of GSIS reflects one other vote of confidence in our vision of engineering a First-World Philippines, particularly through our participation in various government-initiated campaigns and public-private partnerships that aim to handle critical social and transport infrastructure within the country,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said.
He said the corporate’s infrastructure pipeline includes the development of socialized housing units under the federal government’s expanded Pambansang Pabahay para sa Pilipino (4PH) Program using precast construction technology, in addition to transport-centric developments aimed toward modernizing and organizing public transport systems.
Megawide didn’t disclose the worth of the block transactions or discover the sellers of the shares.
Last September, the Home Development Mutual Fund (Pag-IBIG Fund), through the endorsement of the Department of Human Settlements and Urban Development (DHSUD), partnered with Megawide to construct greater than 7,000 socialized housing units under the federal government’s expanded 4PH program.
Earlier this month, the corporate said it plans to expand its horizontal residential developments in Cavite and Bulacan and pursue additional projects under the expanded housing program in other cities and municipalities.
Megawide said it continues to execute its 4-D strategy, citing a 24% increase in first-quarter net income, lower short-term debt after reducing obligations by about P7 billion, and the continued expansion of its precast and transport-centric developments.
The corporate also recently declared money dividends of P0.145 per share, payable on Aug. 7 to shareholders on record as of July 23.
The listed engineering and construction company is targeting a net income of about P1.2 billion this yr, supported by lower borrowing costs following debt reduction and expected growth in its construction and real estate businesses.
For the January-to-March period, attributable net income rose 24% to P265.35 million from P214.42 million a yr earlier, while gross revenue increased 16.4% to P5.04 billion from P4.33 billion.
Shares in Megawide fell seven centavos, or 1.67%, to shut at P4.12 each on Wednesday. — Ashley Erika O. Jose