"The PentaCapital advisory team will look at the financial condition of Fairmont, its assets and liabilities, and recommend to us whether or not the company can be turned into a vehicle for profitable operations and whether or not it can offer increased value to both Fairmont and Megaworld shareholders," said Megaworld corporate information officer Francis Canuto.
On the legal side, an external legal team will join PentaCapital to study the legal issues that affect Megaworld’s options regarding its exposure to Fairmont, Canuto said.
PentaCapital, a leading player in the investment banking and financial services sectors, specializes in catering to clients engaged in real estate development, leisure and tourism and infrastructure.
"Megaworld’s appointment of PentaCapital to review Fairmont’s operations is a strong signal that it wants to move with extreme caution with regard to its exposure to the company, given the controversy involving certain stockholders of Fairmont," analyst Jacob Nocom of Asiasec Equities said.
Megaworld’s exposure in Financial represents only about three percent of its total asset portfolio, which will not be affected by any sharp drop in Fairmont‘s share price. Megaworld has remained a passive investor in Fairmont.