Government selling stake in MVP-led tollways firm

MANILA, Philippines — The government is bidding out its 20 percent stake in Tollways Management Corp. (TMC) for P2.58 billion.

In an invitation to submit offers for the negotiated sale of shares of stock, the Privatization Office (PMO) said interested parties have until March 16, 2020 to submit bids for the government’s 76,000 shares in TMC.

TMC is the operator of the North Luzon expressway (NLEx), Subic-Clark-Tarlac expressway (SCTEx), and Manila-Cavite expressway (CAVITEx) controlled by businessman Manuel V. Pangilinan.

 “The government shares are being offered at the minimum base price. The price is payable in cash and exclusive of any and all taxes. All taxes, fees, and expenses pursuant to or in relation to the sale shall be borne by the buyer. Qualified offerors must submit an offer not lower than the minimum base price,” the PMO said.

Each interested bidder must accomplish and submit to the PMO disposition committee a letter of intent and duly notarized confidentiality agreement from Jan. 27 to Feb. 21 next year.

Interested parties are also required to pay a non-refundable participation fee of P50,000 in the form of a manager’s check drawn on any reputable bank in Metro Manila acceptable to the PMO DC and payable to the order of the “Privatization and Management Office”.

Upon compliance with the foregoing, the disposition committee shall issue to qualified bidders the negotiated sale package that includes the authenticated specific rules on negotiated sale, as well as the draft transaction documents.

 The qualified parties may conduct due diligence on TMC as well as preliminary conference and one-on-one meetings.

“The PMO disposition committee reserves the right to reject any or all offers, or to waive any defect or required formality therein, and/or to accept the offers considered most advantageous to the Republic of the Philippines.

 The PMO and the PMO DC may resort to other modes of disposition provided under existing laws, rules, and regulations, for the sale of the government shares, in case of a failure of this negotiated sale,” it said. 

PMO said it would not assume any obligation to compensate or indemnify parties for any expense or loss they may incur as a result of their participation in the negotiated sale process nor does it guarantee that an award would be made.

The government tried to dispose its minority stake in the tollways operator in April this year but not a single bidder showed up during the deadline for the submission of bids.

 TMC, which operates and maintains toll roads, is a subsidiary of NLEx Corp., which is in turn a subsidiary of Metro Pacific Tollways Corp.