Metro Pacific Holdings converts P6.6-B bonds into MPIC equity

MANILA, Philippines - Metro Pacific Holdings Inc. (MPHI) has exercised its conversion rights with respect to the P6.6-billion convertible bonds issued by Metro Pacific Investments Corp. (MPIC) last March 30, further raising its stake in the latter.

MPIC announced that it received yesterday the notice of conversion from MPHI of P6.6 billion MPIC convertible bonds into 2.03 billion MPIC common shares.

Both MPIC and MPHI have acknowledged and agreed that the shares are to be issued by MPIC out of an increase in the authorized capital stock of MPIC which is currently in process.

MPIC, however, said that if the increase in the authorized capital stock of MPIC is not completed within 30 days from conversion date, MPHI has the option to require MPIC to issue the conversion shares out of its current unissued capital.

As of March 31, 2011, MPHI owned 55.56 percent of MPIC or about 11.2 billion shares, making it the controlling and biggest shareholder of Hong Kong-based First Pacific Co.’s flagship company in the Philippines. About 44 percent is held by the public. The single biggest individual shareholder is MPIC chairman Manuel V. Pangilinan with 0.11 percent.

MPIC has been strengthening its infrastructure portfolio, following announcements that it has submitted an expression of interest to participate in the bidding for the operation and maintenance of the Metro Rail Transit (MRT) Line 3 and Light Rail Transit (LRT) Line 1.

The company has likewise expressed interest in the operation and maintenance of the Ninoy Aquino International Airport (NAIA) if the terminals will be bid out as a package.

Pangilinan has also signified his company’s interest in the development of the Diosdado Macapagal International Airport (DMIA) in Clark, Pampanga. The plan includes not only the construction of a second terminal but also a high-speed rail system that will connect DMIA to Manila.

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