The Villar Group is diversifying into the tollway business with the acquisition of 100 percent of MCX Project Company, Inc. (MCXPCI) from Ayala Corporation for P3.8 billion.
In a disclosure to the Philippine Stock Exchange, Ayala said it has signed an investment agreement with Prime Asset Ventures, Inc. (PAVI) of the Villar Group for the sale of MCXPCI.
MCXPCI is the special purpose corporation that will hold the Concession Assets, Rights and Obligations under the Muntinlupa-Cavite Expressway (MCX) Project Concession Agreement (MCX CA).
Ayala said the spinoff of the MCX Project from AC to MCXPCI and the sale of ownership interests from AC to PAVI are subject to the consent of the project’s grantor, the Department of Public Works and Highways (DPWH).
The concession assets and obligations under the MCX CA are currently embedded within AC. AC is in the process of transferring the same to MCXPCI following the receipt of consent from DPWH.
In its letter dated March 10, 2022, DPWH granted its consent to the transfer of the concession assets and obligations under the MCX CA from AC to MCXPCI.
“The sale of MCXPCI is aligned with Ayala’s strategic priority to realize value from certain non-core assets and sharpen its focus on the continued expansion of its core businesses in real estate, banking, telecommunications, and power, and scaling up its emerging businesses in healthcare and logistics,” Ayala said.
It added that, “the transaction supports Ayala’s target to raise $1 billion from value realization initiatives by 2023, which is executed through a combination of strategic partnerships and divestment of certain non-core assets.”
The proceeds of P3.8 billion will be used by Ayala to fund future investments and further strengthen the company’s balance sheet.
The sales will be done via the secondary sale of shares and redemption of preferred shares held by AC in MCXPCI.
Of the P3.8 billion, AC will be paid P3.22 billion upon financial close while P581 million will be paid upon lapse of AC’s lockup period as prescribed under the MCX CA.