Holding firm secures agreement to acquire tollway operator

MANILA, Philippines - Listed holding company Metro Pacific Investment Corporation (MPIC) is moving forward to acquire a majority stake in the Lopez-owned companies that maintain and operate the North Luzon Expressway (NLEX). MPIC disclosed on Tuesday that it has signed a definitive agreement to 67.1 percent effective interest in Manila North Tollways Corporation (MNTC), the Lopez-led concession holder of the NLEX. MPIC said it has signed the Sale and Purchase Agreement with First Philippine Holdings Corporation (FPH) and Benpres Holdings Corporation (Benpres) which own 50.05 percent and 48.08 percent respectively in First Philippine Holdings Infrastructure, Inc. (FPII), which owns 100% of First Philippine Infrastructure Development Corporation (FPIDC). FPIDC, on the other hand, owns 67.1 percent of MNTC and 46 percent of Tollways Management Corporation, the operator of NLEX. MNTC was granted the right to construct and operate the 83.7-kilometer NLEX and the additional 8.5-kilometer Subic-Tipo Expressway. Early this month, MPIC disclosed that its Board of Directors has approved the acquisition that will cost P12.262 billion. Of the amount, MPIC will shell out P11.8 billion upon closing the deal and upon assumption of certain advances reaching P462.6 million. The deal is expected to close this November since MPIC is also expected to make a tender offer to the public shareholders at P2.46 per share. This will cost MPIC approximately P19.7 million. The total acquisition costs will come from First Pacific Company Limited of Hong Kong, and internal resources. The Lopez family has been selling some of its stakes to pay off some debts. Metro Pacific, on the other hand, has been investing in big ticket infrastructure projects. MPIC President and CEO Jose Ma. K. Lim said in a statement that once the deal with the Lopezes is completed, “this places MPIC in the forefront of infrastructure development in the Philippines." With the acquisition, MPIC also has the option to operate and manage the 65.8-km SCTEX direct link between Subic Bay Free Port and Clark Economic Zone. But this will have to be approved by the Bases Conversion Development Authority (BCDA) which manages the economic zones along the SCTEX. Last year, the BCDA signed an agreement with the consortium of FPH, Egis Road Operation, and TMC to maintain and operate the SCTEx. The deal with the Lopezes will also give MPIC the option to acquire a 10% interest in the Private Infrastructure Development Corporation (PIDC) which was awarded the concession to extend the NLEX to another 88.5 kilometers from Tarlac to Rosario, La Union onced completed by 2013. This option is subject to the exercise of the right of first refusal of the existing consortium members of PIDC. - GMANews.TV