December 15, 2013

MWIDE open to financial, retail partnership with SM group

abs-cbnnews.com reported that Megawide Construction is open to having the SM group as retail partner if and when it is finally awarded the contract to expand and modernize the Mactan-Cebu international airport. The chairman of the company was also quoted as saying it will also consider a financial partnership with the group as part of its options in raising funds to bankroll the project. MWIDE is in a consortium with GMR of India that offered the highest financial bid for the project which was auctioned off by government last week under its Public-Private Partnership program. Government is now finalizing its review of the bids with a view of awarding the contract on 16 Jan 2014.

Our take: We have partly anticipated this possibility given that the Sy family sits on the board of MWIDE. However, it remains to be seen if GMR (which is active in both airports and retail operations) will agree to any such arrangements. SM is currently building its second mall in Cebu call SM Seaside Mall which will be as big as the Mall of Asia when completed by 2015. - WealthSec