MVP, Ang agree to include assets in Indonesia in tollways merger

MANILA, Philippines — Businessmen Manuel V. Pangilinan and Ramon Ang have agreed to include the Indonesian projects of Metro Pacific Tollways Corp. (MPTC) in their planned mega-tollways merger.

Pangilinan, chairman of Metro Pacific Tollways Corp. (MPTC), told reporters yesterday that the planned merger of MPTC and San Miguel Corp.’s toll road unit are making progress.

“I think we we’ll sign an agreement within the year. Within the next few months. But it’s subject of course to government approval, so hopefully toward the end of the year,” he said.

Pangilinan confirmed that MPTC’s Indonesian assets would be included in the merger.

“Yes, they are,” he said.

The inclusion of MPTC’s Indonesian projects is among those being studied earlier by both companies for their planned joint venture given their cost and size.

Metro Pacific Tollways Asia, a unit of MPTC, owns a 40-percent stake in the operator of Sheikh Mohamed Bin Zayed Flyover in Indonesia and operates two projects in Vietnam – the Hanoi Highways Expansion Phase 2 and the Rach Mieu Bridge.

The company also expects Indonesia to declare it the winner of the bidding for a 35 percent share in PT Jasamarga Transjawa Tol within the month.

Jasamarga is the operator of a 676-kilometer portion of the Trans-Java Toll.

Once the deal is awarded, MPTC’s international business will outvalue its domestic network, as the Trans-Java Toll services around 900,000 vehicles every day.

The merged entity of MPTC and SMC’s toll unit is targeted to be listed in the Philippine Stock Exchange.

In the Philippines, MPTC operates the North Luzon Expressway, Subic-Clark-Tarlac Expressway, Manila-Cavite Expressway, Cavite-Laguna Expressway and Cebu-Cordova Link Expressway.

SMC, on the other hand, operates the Tarlac-Pangasinan-La Union Expressway, Skyway System, Southern Tagalog Arterial Road, South Luzon Expressway and NAIA Expressway.