MPTC unloads stake in Thai toll road operator

MANILA, Philippines — Metro Pacific Tollways Corp. (MPTC) is exiting one of its international ventures as it unloaded its stake in Thai toll road operator Don Muang Tollway Public Co. Ltd. (DMT) for $149.25 million.

In a stock exchange filing, Metro Pacific Investments Corp. (MPIC) said unit MPTC and  its indirect wholly owned subsidiary FPM Tollway (Thailand) Ltd. entered into share purchase agreements with several parties for the sale of their entire shareholdings in AIF Toll Roads Holdings (Thailand) Co. Ltd.

AIF Toll Roads owns approximately 29.45 percent of the outstanding shares of DMT, which holds the concession for a 21.9 kilometer elevated toll road facility in Bangkok.

MPIC said its tollways unit decided to take advantage of the increased interest from third parties to acquire MPTC’s entire shareholdings in DMT.

The shares were sold to Sombath Phanichewa, an existing DMT shareholder and chairman of its board of directors, as well as to investment company Ademas Co. Ltd., members of the Wachirapong family and other Thai investors.

MPIC said the transaction is expected to strengthen the balance sheet of MPTC.

“The transaction will allow MPTC to realize a gain on its investment in DMT and benefit from the increased liquidity. The proceeds from the sale will be used to fund MPTC’s other projects,” it said.

MPIC said the purchase price was determined “after an arm’s length negotiation between FPM Tollway and the purchasers, after taking into account the AIF Toll Road’s 29.45 percent interest in DMT, the value of the assets and business of DMT, and in comparison to a previous offer received by FPM Tollways and MPTC.”

In 2013, First Pacific and MPIC formed a joint venture to acquire a 29.45 stake in DMT.

With its exit in Thailand, MPTC continues to have investments in Indonesia and Vietnam.

In the country, the company’s portfolio includes the NLEX, SCTEX, CAVITEX, and CALAX. It is also constructing the C5-South Link, Connector Road and the Cebu-Cordova Link Expressway in Cebu.

Aside from toll roads,  MPIC also has investments in water, power generation and distribution; healthcare services, light rail, and logistics.