MPIC: No changes in business operations after PSE delisting

It would be business as usual for Pangilinan-led infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) after its eventual delisting from the Philippine Stock Exchange (PSE).

Last week, MPIC announced its plan to voluntarily delist from the local bourse as controlling shareholders are set to buy out the minority through a P48.6 billion tender offer.

MPIC said a consortium of major shareholders — Metro Pacific Holdings Inc. (MPHI), GT Capital Holdings Inc., Mit-Pacific Infrastructure Holdings Inc., and MIG Holdings Incorporated — is set to acquire the remaining 36.6% at P4.63 apiece.

Despite the planned public delisting of the conglomerate, MPIC chief finance officer Chaye Cabal-Revilla said, “There is not going to be any change.”

“We will run MPIC as if it were publicly listed. We will maintain the same board, governance, we will also maintain the board committees and we will also be publishing our integrated report showcasing our sustainability initiatives etc…,” Cabal-Revilla said.

In a press release, MPIC said that upon successful delisting it intends to continue its business as currently conducted, particularly owning and managing its portfolio of investments, as well as investing in other sectors of the economy in the Philippines and other parts of South East Asia.

“It’s important that despite our character being private, the principle of governance and sustainability should still apply. So we will maintain an independent board as much as possible,” MPIC chairman, president, and CEO Manuel V. Pangilinan said.

“We’ll still print annual reports despite being private, our sustainability report will be there. We will conduct our affairs as if we were listed,” he said.

MPIC booked a consolidated core net income of P4.3 billion in the January to March period, up 38% from P3.1 billion a year earlier.

The company saw strong performance from its power generation business and higher billed volumes from the water concession.

In particular, MPIC’s power business, led by Meralco, accounted for P4.2 billion or 75% of its net operating income.

Meanwhile, toll roads contributed P1.3 billion or 23%; water contributed P1.1 billion or 19%; and the other businesses, mainly light rail, healthcare, agribusiness, real estate, and fuel storage, incurred a net loss of P967 million.

“For the full year 2023, total MPIC capex (capital expenditures) will be at P140 billion. The biggest one will be coming from water P64 billion and next is MPTC (Metro Pacific Tollways Corp.) at P27 billion, and almost the same P26 billion for Maynilad,” Cabal-Revilla said.

MPIC is the Philippine arm of Hong Kong-based investment holding firm First Pacific Company Ltd. It has interests in tollways, water distribution and sewerage services, railways, hospitals, power generation and distribution.

MPIC currently owns 47.5% of Manila Electric Co. (Meralco), 99.9% of Metro Pacific Tollways Corp., 52.8% of Maynilad Water Services Inc., 20.0% of Metro Pacific Health Corp., and other assets.—AOL, GMA Integrated News