Alliance Global Inc. (AGI) is investing an additional P2.62 billion into unit Megaworld Corp.
The Andrew Tan-led group said it will be subscribing to 1.38 billion shares of Megaword that will be sourced out of the latter’s P5.5- billion increase in capitalization at a purchase price of P1.90 per share.
“This represents a premium of 5 percent over Megaworld’s 30-day volume weighted average price (VWAP),” Alliance Global said.
“The subscription is made by AGI to support growth and future business expansions of Megaworld in line with the latter’s strategies and directions,” it added.
The subscription will increase AGI’s stake in Megaworld further from the current 56.96 percent.
Megaworld eyes to spend P55 billion this year out of its P350 billion five- year capex program starting 2023.
