Sumitomo buys stake in LRT1 operator

Japanese conglomerate Sumitomo Corp. has acquired stakes in Metro Pacific Investments Corp.’s (MPIC) railway unit, which holds stakes in the private operator of Light Rail Transit Line 1 (LRT1).

In a disclosure to the Philippine Stock Exchange on Friday, MPIC said Sumitomo acquired 34.9% stake in Metro Pacific Light Rail (MPLRC) for an undisclosed cost.

Prior to the transaction, MPLRC held 55% stake in Light Rail Manila Corp. (LRMC), the operator of LRT1.

The deal gave Sumitomo a 19.2% indirect interest in LRMC.

“MPIC welcomes Sumitomo as a strategic stakeholder in the LRT1 project along with its current partners AC Infrastructure Holdings Corporation and Macquarie Investments Holdings (Philippines) Limited,” MPIC chairman Manuel V. Pangilinan said.

“This investment by Sumitomo is a welcome illustration in their belief in the future of this project. We are all eager to resume operations of LRT1 when the current extended quarantine is released,” he added.

LRMC has a 32-year concession from September 12, 2015 to operate, maintain and extend the 20.7-kilometer LRT1. The railway currently has 20 stations. The private operator has started works on the extension of the system to Cavite.

“This transaction is a testament of our shareholders’ dedication to further improve LRMC. Sumitomo’s investment will significantly contribute to the efficiency of our current operations and assist us as we continue heavy work on the Cavite Extension,” Juan Alfonso, LRMC president and CEO, said.

“The investment helps us further enhance the ridership experience of our passengers and will support us to ensure that we deliver Phase 1 of the Cavite Extension as fast as possible. We are excited to have Sumitomo onboard,” Alfonso said. --KBK, GMA News