Tycoon Andrew Tan’s conglomerate Alliance Global Group (AGI) is poised to inject P2.6 billion into its flagship property arm Megaworld Corp., helping accelerate the developer’s plans to grow its malls, offices and hotel by 2030.
In a stock exchange filing on Thursday, AGI said its board approved the purchase of 1.38 billion Megaworld shares at a price of P1.90 each. This is a 7.9 percent premium over Megaworld’s closing price the day before the announcement.
Megaworld is expected to issue the shares after completing a P5.5 billion capital increase. This will require the approval of the Securities and Exchange Commission.
Kevin Tan, CEO at AGI and Megaworld chief strategy officer, said on Monday the company will develop 1 million meters of mall and leasable space, mainly outside Metro Manila, with the goal of reaching 3 million by 2030.
Megaworld is also targeting to double its hotel footprint by 2029 and increase residential sales.
