MANILA, Philippines – Manuel V. Pangilinan-led Metro Pacific Investments Corp. (MPIC) said Wednesday, January 23, it raised P6.12 billion to finance its entry in new businesses as well as the expansion of its toll road and water distribution units.
In a disclosure to the stock exchange, MPIC said it sold 1.33 billion common shares at P4.60 apiece via private placement. The price was a 6.31% discount to the company’s closing price in the market on Tuesday, January 22.
Pangilinan, chair of MPIC, said the fresh funds would enable the company to participate in infrastructure projects under the government’s public-private partnership (PPP) scheme. Among the projects the company wants to pursue are the Light Rail Transit (LRT) 1 operation and management, Mactan-Cebu International Airport expansion, and the Cavite-Laguna (CALA) expressway.
“We are beginning to see some momentum in the government’s PPP initiative. Bidding processes including prequalification requirements are already running for LRT-1 and Cebu-Mactan airport and we believe government will soon commence bidding on the CALA expressway,” Pangilinan said.
MPIC President and CEO Jose Ma. K. Lim said proceeds of the private placement would also be spent for the construction of the proposed road linking the North Luzon and South Luzon expressways, and investments in the water sector.
The government recently approved the NLEx-SLEx connector road proposals of MPIC and San Miguel Corp.-backed Citra Metro Manila Tollways Corp. MPIC’s proposal will be subjected to a Swiss challenge however because it is unsolicited.
MPIC’s NLEx-SLEx road project is estimated to cost P25.5 billion. Unit Maynilad Water Services Inc. plans to spend P17.2 billion for capital expenditures this year.
MPIC parent Metro Pacific Holdings Inc. sold shares in the company to institutional investors in Asia, Europe and the US. As a result of the sale, MPHI’s economic interest in the infrastructure conglomerate dropped to 55.95% from 58.97%. – Rappler.com
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