SMC to lead group that will build new northern Luzon toll roads

Diversifying conglomerate San Miguel Corp. (SMC) is set to become the single largest shareholder of a consortium tasked to construct a road network connecting two major Philippine highways to the northernmost Luzon provinces. San Miguel disclosed to the Philippine Stock Exchange (PSE) on Thursday that its subsidiary Rapid Thoroughfares Inc. signed a subscription agreement for a 35-percent stake in Private Infra Dev Corp., a consortium of construction companies behind the Tarlac-Pangasinan-La Union Expressway Project. "The Agreement is the most recent step in SMC's strategic transformation (to) diversify from its core food, beverage and packaging portfolio, and marks its entry into infrastructure and tollways," the company said. Ramon S. Ang, SMC vice chairman and president, told GMANews.TV in a text message that the cost of the 35 percent acquisition has yet to be confirmed. "Yes at 35 [percent, SMC will be the single largest shareholder of PIDC]," Ang said. Among PIDC's members are Consunji-led DMCI group. The 88-kilometer road that will connect North Luzon Expressway and Subic-Clark-Tarlac Expressway to provinces in Northern Luzon is estimated to have a construction cost of P15 billion. Originally, PIDC, which is capitalized at P1-billion, was a consortium led by DM Consunji Inc., and Lopez-led First Philippine Infrastructure Group. Formed in 2007, the consortium plans to secure big-ticket government infrastructure projects. However, late last year, First Infrastructure was acquired by Metro Pacific Investments Corp., the local unit of Hong Kong-listed First Pacific Co. Ltd., from the Lopez family as part of its strategy to venture into heavy industries. San Miguel has also been aggressive in its bid to diversify from its core food business. It is planning to acquire control of Petron Corp., the country’s largest oil refiner, and is among the major shareholders of Manila Electric Co., the Philippines’ largest power distributor. It has also partnered with a Qatari firm for its venture into the telecommunications business. San Miguel has also formed a subsidiary that submitted an unsolicited proposal for the P48-billion development of the Laiban Dam project. PIDC has planned to start the construction of the project this year and complete the road in five years. The expressway development will be constructed in two phases. The first phase covers a road from Tarlac to Carmen, Pangasinan, while the second phase covers the stretch from Pangasinan to La Union. Cheryl M. Arcibal, GMANews.TV