SMC, MPIC to square off anew in bid for MRT 3

MANILA, Philippines -  Corporate giants San Miguel Corp. and Metro Pacific Investments Corp. (MPIC) are seen to square off anew over the government’s controlling stake in Metro Rail Transit Corp., which operates the electric train system running along EDSA.

The state-run Development Bank of the Philippines disclosed over the weekend it was considering selling its 75-percent stake in MRTC through a competitive bidding to maximize the value of its shares. The sale could fetch around $400 million based on DBP’s estimates and assumptions.

In separate text messages, San Miguel president Ramon Ang and MPIC president Joey Lim said they were interested in acquiring the government’s stake in MRT 3, the country’s most used railway system.

“Yes, we will join the bidding,” Ang said.

San Miguel in earlier disclosures said its interest in the MRT 3 project dates back to 2008. During such time, San Miguel was still in talks with the proponents of the Metro Rail Transit 9 project.

Meanwhile, Metro Pacific, the local flagship of Hong Kong-based conglomerate First Pacific Co. Ltd., offered $1.1 billion to acquire the government’s stake in MRTC.

Lim said part of MPIC’s proposal was to buy out the economic rights held by DBP and another government financial institution, Land Bank of the Philippines in the MRT 3 project. The two banks own a combined direct interest of 22 percent and 75 percent economic rights through bondholders.

“We have expressed interest on their (GFIs) equity stake as part of the proposal we submitted earlier. However, we did not discuss the bonds, which are being serviced by the Department of Transportation and Communication (DOTC),” Lim said.

Last year, MPIC signed agreements to buy 48 percent of MRTC from the Fil-Estate Group led by businessman Robert John Sobrepena.

DBP said the sale of its investment in MRTC would help boost its income this year.