Metro Pacific Investments Corp. (MPIC) said it is selling a 20 percent stake in its toll road unit Metro Pacific Tollways Corp. (MPTC).
MPIC chairman Manuel Pangilinan in an ambush interview on Wednesday night said the company is now firming up negotiations with a single investor for a private placement, with discussions “down to the short strokes.”
MPTC posted a net income of P6.5 billion last year, up 28 percent from P5.08 billion a year earlier.
Its core profit grew 9 percent to P6.4 billion. Revenues hit P31.6 billion, up 16 percent from P27.24 billion, with the business registering an average daily vehicle traffic of 703,475 vehicles in its Philippines operation, up 7 percent.
Its Vietnam operation, however, incurred a 2 percent decline to 76,113 in vehicle traffic. Its Indonesian toll business showed a 1 percent drop to 1,642,227 vehicles.
Chaye Cabal-Revilla, MPIC chief finance, risk and sustainability officer, said the proceeds of the sale is part of MPIC’s move to raise P30-50 billion to cut down current debts of P64.99 billion, about half of which are obligations attributed to MPTC.
Cabal-Revilla, at MPIC’s earnings briefing Wednesday afternoon, said the proceeds from the private placement would be enough to pay off all MPTC debts, and will facilitate the planned merger with San Miguel Corp.’s SMC Tollways Corp.
MPIC earlier deferred the merger discussions with San Miguel.
Pangilinan, meanwhile, said the MPIC is not in a hurry to list MPTC back into the market and the listing will only be pursued once Japan’s Mitsui completes the conversion of its stake in MPIC into MPTC.
In September 2024, MPIC entered into a framework agreement to buy back 4.58 billion common shares or 50 percent of the common shares held by Mit-Pacific — a joint venture between Mitsui & Co. Ltd. and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development — in the company.
Under the deal, MPIC will buy back 4.577 billion common shares owned by Mit-Pacific, representing 7.3 percent of MPIC, cutting Mit-Pacific’s stake in MPIC to 7.8 percent, while MPIC’s shares in the company will increase to 49.9 percent.
MPIC will then issue exchange bond to Mit-Pacific worth P11.9 billion, convertible to 1.495 billion common shares of MPTC.
