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MANILA, Philippines – The country’s largest infrastructure group further expanded its tollroad portfolio with its stake in the 14-kilometer Manila-Cavite Toll Expressway (Cavitex).
In a disclosure to the stock exchange on Thursday, December 27, Metro Pacific Investments Corp (MPIC), led by businessman Manuel V. Pangilinan, said it is investing P6.77-billion in the holding firm that controls the tollroad.
Starting January 2, 2013, MPIC’s tollroad subsidiary Metro Pacific Tollways Corp (MPTC) will provide management assistance to Cavitex Infrastructure Corp. (CIC, formerly UEM-Mara Philippines Corp), which operates and maintains Cavitex.
In a statement, CHI said MPTC’s expertise in operating the North Luzon Expressway (NLEx) and Subic-Clark-Tarlac Expressway (SCTEx) can help improve the services that Cavitex currently provides.
“We are looking forward to delivering to motorists on the Cavitex the same standard of customer service and excellence that MPTC already provides on the NLEx and the SCTEx,” MPTC chief executive officer Ramoncito Fernandes said.
About 90,000 vehicles a day pass through Cavitex, which connects two key areas south of Metro Manila: Cavite and Laguna. CIC has the concession from the government that extends up to 2033 for the originally built road and to 2046 for a subsequent extension.
Investment structure
The investment is via a financing and cooperation agreement between MPTC and CIC, which is the parent of CIC, the concession holder.
CHI will issue a convertible note to MPTC, providing the option to convert in the future to new, non-voting redeemable convertible preference shares in CHI or common shares of CIC.
Real estate investments
“The proceeds from this financing will be used by CHI to invest in the Aquino administration’s PPP (public-private partnership) projects, as well as future real estate projects with the Philippine Reclamation Authority,” said CHI chair Luis Virata.
“I am pleased that through our agreements MPTC will be able to assist in the future development of Cavitex and possibly adjoining roads in this rapidly growing part of Metro Manila,” MPIC chair Pangilinan said.
Complementing real estate projects with stakes in tollroad projects was also the strategy of the Ayala group when it bid and won the Daang Hari-SLEx connector road in December 2011.
“This is another step in our long signaled determination to further expand and develop Metro Manila’s tollroads,” MPIC president Jose Ma. Lim added. – Rappler.com
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