Metro Pacific group hikes stake in Citra

MANILA, Philippines - The Metro Pacific group is increasing its stake in Citra Metro Manila Tollways Corp. (CMMTC), the concession holder for the Metro Manila Skyway project.

The group announced that Metro Pacific Tollways Corp. (MPTC) has raised its stake in Metro Strategic Infrastructure Holdings Inc. (MSIHI) which indirectly owns a stake in CMMTC.

This developed after MPTC acquired from Ambassador Albert F. del Rosario his interests in MSIHI consisting of 80,000 MSIHI shares representing all of his shares in MSIHI and equivalent to 20 percent direct equity interest in MSIHI at a purchase price of P8 million and deposit for future stock subscription amounting to P19. 59 million at a purchase price of equivalent amount.

Company officials said that as a result of the purchase by the MPTC of Del Rosario’s shares in MSIHI, MPTC now holds 57 percent direct equity interest in MSIHI and 1.54 percent indirect equity interest in Citra Metro Manila Tollways Corp. (CMMTC), of which MSIHI is a shareholder.

Officials also revealed that MPTC will also acquire parent Metro Pacific Investment Corp.’s 159,996 shares in MSIHI, representing an additional 40-percent direct equity interest in MSIHI, under the same terms and conditions as the purchase of Del Rosario’s MSIHI shares.

Last August 2010, MPTC acquired the stake of businessman Cezar Quiambao in MSIHI consisting of 148,000 shares equivalent to a 0.98 percent indirect equity interest in CMMTC at a purchase price of P51 million.

MPIC president Jose Ma. Lim earlier said that they hope to raise their stake in CMMTC from the current five percent to a least 33 percent.

However, he noted that this could be diluted to 25 percent once some bondholders convert debt to equity.

The foreign shareholders control about 66 percent of the company but this will be reduced to 50 percent when MPTC comes in.

CMMTC is behind the South Metro Manila Skyway (SMMS) Project, the Stage 1 of which covers the 9.5-kilometer elevated toll road from Buendia to Bicutan; and of the upgrading of the 13.5-km at-grade toll road from Magallanes to Alabang. Stage 1 has been operational since 1999.

Stage 2 of the SMMS Project covers the 6.88-km elevated section from Bicutan to Alabang as well as the continued rehabilitation of existing at-grade section of the Skyway from Magallanes to Alabang at a cost of P10 billion.

Earlier, MPTC president Ramoncito Fernandez said that they are expanding their portfolio through acquisition of shares in other toll road concessionaires.

He said that among several prospects, MPTC has increased its stake in CMMTC and has also expressed interest to acquire a stake in South Luzon Tollway Corp., the concessionaire for the South Luzon Expressway.