Metro Pacific Tollways Corporation (MPTC), a subsidiary of Pangilinan-led Metro Pacific Investments Corporation (MPIC), is raising P30 billion to P50 billion in equity to pay for maturing obligations.
In an interview at the sidelines of Management Association of the Philippines general membership meeting, MPIC Chairman and President Manuel V. Pangilinan said the fresh capital will be raised via a private placement of new shares since MPTC is wholly-owned by MPIC.
MPIC is looking at the possible public listing of MPTC in the second semester of 2025 while also considering a 50-50 merger with SMC Tollways of diversified conglomerate San Miguel Corporation.
However, the public listing will have to come after the completion by Japan’s Mitsui of the conversion of its stake in MPIC to MPTC.
In September 2024, MPIC entered into a framework agreement to buy back 4.58 million 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. This will cut Mit-Pacific’s stake in MPIC to 7.8 percent, while MPIC’s shares in the company will increase to 49.9 percent.
MPIC also agreed to issue exchangeable bonds to Mit-Pacific worth P11.9 billion. The bonds can be converted into 1.495 billion common shares in MPTC.
The buyback of shares and the issuance of exchangeable bond are inter-conditional and will occur simultaneously at the closing.
If Mit-Pacific opts to exchange the bonds into MPTC shares, it will get a 6.6-percent interest in the tollways company and will be entitled to a board seat in the MPTC board. MPIC’s stake in MPTC will then go down to 93.6 percent.
“The transaction would deepen strategic cooperation between MPIC and Mit-Pacific at operational level, whilst maintaining collaboration across the group,” said MPIC’s parent company First Pacific Co. Ltd.