Metro Pacific Investments Corp. (MPIC) has inked a loan agreement with Inframetro Investments Pte. Ltd. for P1.43 billion.
In a disclosure to the Philippine Stock Exchange, MPIC said the loan is exchangeable into 1.2 billion common shares of DMCI-MPIC Water Co., subject to the fulfillment of certain conditions including the securing of consents from specific third party creditors. In the event that the Inframetro loan is fully exchanged into shares of DMWC, MPIC’s equity interest in the water utility joint venture will be reduced to 30 percent from the current 50 percent.
MPIC said the first principal repayment date of the loan has been set on May 9, 2008, extendable to a final principal repayment date on Jan. 31, 2009.
Inframetro is an affiliate of Ashmore Investment Management Ltd.
MPIC said it has also received a notice from Metro Pacific Holdings Inc. to convert its P2.03 billion worth of loans into a total of 1.89 billion common shares in MPIC.
Prior to such conversion, MPHI held a total of 1.15 billion common shares of MPIC, representing 85.6 percent of the total outstanding capital stock. The conversion will increase MPHI’s shareholdings in MPIC to 94 percent.
In the nine months ending September 2007, MPIC reported a core net income of P142.4 million, a turnaround from the restated core net loss of P60.8 million the previous level.
Including a non-recurring income of P93.2 million, net income amounted to P235.6 million during the period under review compared with a restated net loss of P590.9 million a year earlier.
Maynilad reported a 15 percent growth in net profit in the period January to September 2007 to P1.14 billion, contributing P453.5 million to MPIC.