MPTDC hikes stake in TMC

MANILA, Philippines - Metro Pacific Investments Corp.’s toll road unit has acquired additional shares worth over P800 million in Tollways Management Corp. (TMC), which is set to be merged with another subsidiary Manila North Tollways Corp. (MNTC).

In a disclosure, the infrastructure conglomerate said Metro Pacific Tollways Development Corp. (MPTDC) has acquired 53,200 TMC common shares from Egis Road Operation S.A. (EROSA), representing 14 percent of the total issued and outstanding capital stock of TMC.

MPTDC paid the total purchase price of P884.66 million for the shares on Dec.28.

Prior to completion of the transaction, MPTDC held 174,800 TMC shares or 46 percent of the issued share capital of TMC.

Upon completion of the transaction, MPTDC will own 228,000 TMC shares or approximately 60 percent of the issued share capital of TMC.

MNTC president and CEO Rodrigo Franco said the transaction took place as “MPTDC wants to increase its stake in MNTC post-merger.”

MPIC is merging its units TMC and MNTC with the latter as the surviving entity.

MPTDC and EROSA are both shareholders of MNTC.

Through the merger, MPIC expects to create a stronger firm with streamlined processes and better ability to finance and undertake projects.

Last month, MNTC secured the approval of stockholders for the proposed merger with TMC, as well as the change of name of the company to North Luzon Expressways Corp. or NLEX Corp.

The merger would still need the green light of regulators such as the Philippine Competition Commission and the Securities and Exchange Commission (SEC).

The change of name would also require SEC approval.

MNTC is the concessionaire for both the NLEX and Subic-Clark-Tarlac Expressway.

It is also the designated company for the NLEX-South Luzon Expressway connector road project.

TMC, meanwhile, is engaged in the operations and maintenance of tollways, its facilities, interchanges and related works, among others.

MPIC is currently the country’s largest toll road developer.

Aside from tollways, MPIC is involved in other businesses such as water, power, health care, rail, and logistics.