MPIC takes 48% stake in MRT Line 3 operator

MANILA, Philippines –  Metro Pacific Investments Corp. (MPIC) now owns a 48-percent economic interest in Metro Rail Transit Corp. (MRTC), the owner and operator of the MRT Line 3 railway project.

MPIC chairman Manuel V. Pangilinan also said in an interview that they would likely bring up their ownership to 100 percent by buying out the stake of other private investors as well as government, which owns 23 percent.

Of the 48 percent, about 30 percent came from the Fil-Estate group consisting of Fil-Estate’s direct stake in MRTC and its interest in the controlling block Metro Rail Transit Holdings Inc. or MRTHI.

Anglo Philippine Holdings Corp. (APO) has also agreed in principle to sell its stake in MRTHI to MPIC, subject to the completion of certain closing requirements.

MPIC president Jose Ma. Lim said Anglo holds a 16-percent stake in the block that controls 85 percent of MRTHI.

APO is an investments holding firm focused on and maintaining investments in natural resources, property development and infrastructure activities. The company also maintains minor investments in diversified pioneer projects with attractive economic returns.

It has core investments in Atlas Consolidated Mining & Development Corp., United Paragon Mining Corp., North Triangle Depot Commercial Corp., Shang Properties Inc., MRT Development Corp., MRT Holdings Inc., and Aquatlas Inc. The company also has minority interests in Brightnote Asset Corp. (formerly Batangas Assets Corp.), Philippine Seven Corp., Batangas Assets Corp. and The Philodrill Corp.

Among the major shareholders of APO are the Ramoses of National Bookstore.

Pangilinan earlier disclosed that the other private shareholders of MRTC (which include the Camposes of Unilab and now excludes Fil-Estate chairman Bob Sobrepeña who sold his stake to MPIC earlier), have arrived at a consensus to vote together.

He said private shareholders other than Sobrepeña have sold their respective stakes to MPIC as a group, but there are still others who MPIC hopes to convince to sell.

MPIC earlier acquired the 30 percent stake of Fil-Estate Corp. in MRT 3 and now wants to purchase government’s stake to give it 100-percent ownership. “We have not heard from government yet regarding our proposal,” he revealed.

MPIC earlier offered to acquire the shares held by state-owned lenders Land Bank of the Philippines and Development Bank of the Philippines in MRT 3 for $1.1 billion, an amount enough to settle the government’s outstanding debt to MRTC bondholders.

There have been reports that government is inclined to bid out its stake in MRTC via the solicited bid route. But Pangilinan said it is about time that government recognize that MRTC has been privatized a long time ago.

He also said in an earlier interview that MPIC is currently in talks with government on how to participate in the operation and maintenance (O&M) of the MRT 3.