San Miguel buys out Zamora from MRT-7 for $100 million

San Miguel Corp. (SMC) has acquired a 100-percent control of the Metro Railway Transit 7 (MRT-7) project from Universal LRT Corp. BVI Ltd. (ULC BVI) and businessman Salvador Zamora II.

In a disclosure to the Philippine Stock Exchange on Tuesday, SMC said it signed an agreement on June 16 to buy an additional 49-percent stake in ULC BVI held by Zamora for $100 million.

Zamora is the chairman, president, and CEO of ULC BVI, the company that holds the exclusive rights, obligation, and privilege to finance, design, construct, supply, complete, and commission the MRT-7 project by virtue of a concession agreement the Department of Transportation and Communications.

Under the agreement, SMC also gained a 100-percent equity interest in ULCOM Co. Inc., the designated facility operator of MRT-7 project.

The $100 million consideration for the acquisition of ULC BVI and ULCOM covered the payment for the shares as well as the outstanding shareholder advances of $3.8 million.

MRT-7 is a 23-kilometer mass railway system, linking North Ave. in Quezon City to San Jose del Monte in Bulacan with 14 stations. The P69.30-billion project under the public-private partnership (PPP) program broke ground on April 20.

Earlier, SMC President and CEO Ramon Ang said that the project is to be completed in three to four years. – Ted Cordero/VDS, GMA News