Megaworld trims MREIT stake

Top township developer Megaworld Corp. continues to lighten up on its stake in MREIT Inc., this time selling P2.24 billion worth of the real estate investment trust’s (REIT) shares, in preparation for its fourth wave of asset infusion.

- By JAMES A. LOYOLA

In a disclosure to the Philippine Stock Exchange (PSE), Megaworld said it sold 168.63 million common MREIT shares at an offer price of P13.28 per share under a block sale transaction.

The shares sold are equivalent to 4.53 percent of MREIT’s outstanding capital, and the sale raises its free float level to 40 percent, above the minimum public ownership requirement of 33 percent for REITs.

Abacus Securities Corp. noted that the shares, sold at a discount of five percent from Tuesday’s close, “is very likely in preparation for what has been telegraphed as the latest round of asset injection.”

“With float shares now totaling 1.58 billion, MREIT can issue up to P13.78 billion (about 27 percent of the current market cap) worth of new shares without breaching the minimum public ownership requirement,” it added.