MREIT Inc., the REIT company of township developer Megaworld Corp. (MEG), is notified by MEG’s board of directors of the approval of the sale of 40.65 million common shares in MREIT through a block sale transaction.
The shares were sold at a transaction price of P12.30 per share, resulting in a total transaction value of around P500 million.
The transaction, representing around 1.5 percent of MREIT’s total outstanding shares, garnered support from a reputable, long-term institutional investor.
Kevin Tan, president and chief executive officer of MREIT, said MEG will allocate the proceeds from the transaction to enhance its development pipeline, further expanding the opportunities for MREIT.
He said following the transaction, MEG will maintain a majority stake in MREIT, holding 54.2 percent of the ownership and will remain committed as its sponsor.
This investment underscores the confidence in MREIT’s potential as an attractive and valuable long-term investment opportunity.
All MREIT shares sold in the transaction are owned by MEG and are secondary shares, ensuring that the ownership of existing shareholders of MREIT will not be diluted.
The transaction will likewise increase MREIT’s public float to 44.4 percent and will provide further headroom for the oncoming property-for-share swap. / PR