The Department of Finance (DOF) is offering the government’s remaining shares in NLEX Corp. to the public, which the Pangilinan group failed to acquire due to privatization rules.
Finance Undersecretary Catherine L. Fong confirmed to Manila Bulletin that the government still holds 64,920 shares in NLEX following its recent deal with Metro Pacific Tollways Corp. (MPTC).
On Aug. 2, MPTC, part of Manuel V. Pangilinan-led Metro Pacific Investments Corp. (MPIC), purchased the 2.61-percent government stake in NLEX for P2.5 billion.
Fong, however, noted that this agreement with MPTC does not account for the entire government ownership in NLEX.
“There’s a law that requires us to offer 10 percent to ‘small local investors,’” Fong explained. “That’s the 10 percent,” referring to the 64,920 shares available for public sale.
The Privatization Management Office (PMO), an attached agency of the DOF, is now conducting a public offering for the government’s remaining stake in NLEX.
According to the PMO notice, bidders can submit offers for up to 19 shares, with an indicative price of P5,083.18 per share. If all are sold, the government stands to raise around P330 million in revenue.
However, Fong said that all successful bids will be subject to the existing NLEX shareholders' right of first refusal, giving MPTC the chance to match any offers.
“We just need to go through the process, as advised by DOJ [Department of Justice],” the DOF official said.
“If there are no offers, then they [MPTC] can still get it at the same price as the rest of the 90 percent,” she added.
Currently, MPTC, through MPT North Corp., holds over a 73 percent stake in NLEX, while the remaining shares are owned by other stakeholders, including BDO Unibank Inc., Global Fund Holdings, and EGIS Investment Partner Philippines Inc.
Aside from the 105-kilometer North Luzon Expressway, the company also operates the Subic Clark-Tarlac Expressway (SCTEX) and the NLEX Connector.
In the first quarter of the year, NLEX reported a net income of P2.7 billion, a 28 percent increase from P2.09 billion in the same period last year.