MANILA -- Megawide Construction Corporation on Thursday said it will acquire PH1 World Developers Inc. (PH1) from Citicore Holdings Investment, Inc.

Megawide will buy PH1 for P5.2 billion, they told the Philippine Stock Exchange.

Citicore shall also transfer 579,457,844 common shares in PH1 to the Megawide, according to their disclosure.

In a statement, Megawide said the purchase will accelerate Megawide’s growth momentum, with consolidated net margins expected to improve from single digits to high teens on the back of better margins and price appreciation upside associated with property development.

The acquisition will also help enhance Megawide’s order book quality.

"This reduces counterpart risks from external clients, and turn in more efficient operations as project management is streamlined – boosting overall employee productivity in general," the company said.

Megawide also hopes to earn stable revenues from PH1’s vertical and horizontal developments like the My Enso Lofts in Timog, Quezon City, and Modan Lofts in Pasig and Taytay, Rizal.

Megawide Chairman and Chief Executive Officer Edgar Saavedra said the move is a "natural progression" for Megawide.

“The move is a natural progression of our construction and engineering unit into higher value-generating businesses," he said.

Megaworld is behind public-private partnership projects like the Mactan-Cebu International Airport and Paranaque Integrated Terminal Exchange.

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