Manny Pangilinan reiterates intent to increase stake in LRT1 operator

Businessman Manuel V. Pangilinan, chairman of conglomerate Metro Pacific Investments Corp. (MPIC), has reiterated his interest in further increasing his company’s stake in Light Rail Manila Corp. (LRMC), the private operator of Light Rail Transit Line 1 (LRT1).

“I think, in principle, we are [interested] for several reasons,” Pangilinan told reporters in a chance interview.

“One is the possibility of being able to bid for the MRT3. I understand that the government wants to do what they did with NAIA because we submitted an original proposal,” Pangilinan said.

MPIC and San Miguel Corp. submitted unsolicited proposals to take over the operations and maintenance of MRT3.

The Department of Transportation, however, intends to privatize MRT3 through a solicited bidding process.

Pangilinan said if LRMC is wholly owned by MPIC, it would give the company greater flexibility when it comes to running its railway business.

“I think it is easier for us to move if we are majority-owned, fully under the control of MPIC. It just gives us more ability to be able to do what we want to do,” Pangilinan said.

MPIC, through its Metro Pacific Light Rail Corporation, currently owns 35.8% of LRMC, after Sumitomo Corp. acquired 19.2% in 2020.

The company previously held a 55% stake in LRMC.

Ayala’s AC Infrastructure Holdings Corp. owns 35%, while the remaining 10% is owned by Macquarie Investments Holdings (Philippines) PTE Ltd.

In May 2022, Pangilinan expressed interest in further increasing MPIC’s stake in LRMC.

The MPIC chairman’s latest pronouncement came on the heels of Ayala Corp.’s plan to embark on a $1-billion divestment from its water and railway businesses. — VBL, GMA Integrated News