Metro Pacific selling 20% stake in tollways unit to unload debt

Infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) is unloading stakes in its toll roads unit, Metro Pacific Tollways Corp. (MPTC), to raise funds and cut down obligations.

MPIC chairman Manuel V. Pangilinan confirmed to reporters the company’s plan to sell 20% shares in MPTC.

“The main use will be the reduction of debts MPTC has,” Pangilinan said.

The MPIC chairman added that the company is now in talks with a foreign player.

Pangilinan also said that the plan to sell MPIC’s shares in its tollways unit forms part of the company’s objective to raise P30 billion-P50 billion to pay off MPTC’s debt.

MPIC currently owns over 99% of MPTC.

MPIC chief financial officer Chaye Cabal-Revilla said the company’s plan is to “repay [MPTC’s] debt in absolute terms.”

“We are actually in the process of selling a portion of MPTC's stake to a third party. The proceeds of which will be… the proceeds of which will be used by MPTC to pay off their debt [of about] P64.99 billion,” she said.

MPTC is the holding company for the North Luzon Expressway (NLEX), the Subic-Clark-Tarlac Expressway (SCTEX), the Manila-Cavite Toll Expressway (CAVITEX), the Cavite-Laguna Expressway (CALAX), the Cebu-Cordova Link Expressway (CCLEX), and the NLEX Connector.

In September last year, MPTC and its subsidiary, PT Margautama Nusantara, in partnership with Warrington Investment Pte. Ltd. acquired a 35% equity interest in PT Jasamarga Transjawa Tol (JTT) for $930.3 million.

Cabal-Revilla revealed that MPTC’s acquisition of JTT was “all debt-funded.”

JTT manages and operates the Trans Java Toll Road segments in Java, Indonesia, which has a total length of 676 kilometers. —VBL, GMA Integrated News