MPIC merges TMC, MNTC to consolidate toll road business

Metro Pacific Investments Corp. (MPIC) is consolidating its toll road business by merging Tollways Management Corp. (TMC) with the Manila North Tollways Corp. (MNTC).

In a disclosure to the Philippine Stock Exchange on Tuesday, MPIC said the board of directors of subsidiary MNTC has approved the merger with MNTC as the surviving corporation.

The board of directors of TMC, an associate of MPIC, also approved the consolidation.

"As the surviving corporation, MNTC’s corporate existence shall continue and shall acquire all respective rights, businesses, assets and other properties of TMC, and assume all the debts and liabilities of TMC," MPIC noted.

After the merger has been implemented, MNTC will remain a subsidiary of MPIC.

The TMC- MNTC merger is up for approval of MNTC shareholders in November.

"The execution of the merger shall be subject to regulatory approvals, including the Philippine Competition Commission, and shall take effect 15 days from and after the approval by the Securities and Exchange Commission of the articles of merger and the issuance of filing of the articles of merger," MPIC noted.

The merger may not give MPIC higher earnings from its toll road business, "but is expected to increase MNTC's leverage capacity for its expansion projects."

MNTC holds the concessions to operate both the North Luzon Expressway and the Subic-Clark-Tarlac Expressway.

TMC operates and maintains toll way facilities, interchanges and related works. — Ted Cordero/VDS, GMA News