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Govt readies plan for MRT-3 buyout

April 25, 2008 6:03am
MANILA, Philippines- The government is ironing out a plan to take over the operations of the MRT line 3 along Epifanio delos Santos Avenue (Edsa) without tax and dividend issues.

Finance Undersecretary and Acting National Treasurer Roberto B. Tan on thursday said the procedure would involve the purchase of notes from holders of MRT-3 bonds, which were issued to finance the rail system.

"We will buy notes directly from noteholders. Before, it was through MRT Corp., so dividends were involved," he told reporters.

He added that the transaction needs to be completed "as soon as possible" as the purchase price increases due to accumulating interest payments. From the initial takeover price of $865 million, Mr. Tan said the MRT-3 buyout now costs over $910 million. - BusinessWorld
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