Airport to road: San Miguel eyes more deals with Koreans
MANILA, Philippines - After a partnership with Incheon Airport International Corp. for the Mactan-Cebu airport project bid, diversified conglomerate San Miguel Corp. is considering another deal with a South Korean firm.
This was according to San Miguel president and COO Ramon S. Ang who told reporters that a Korean company has expressed interest in acquiring up to 40% stake interest in its P15.8 billion Ninoy Aquino International Airport (NAIA) expressway toll road project.
“If we want to sell 30% to 40% to a foreign company, a Korean company really want to come in and is even offering a premium for the project,” he stressed.
He said the partner is expected to help shoulder the cost of construction and to bring in technical expertise.
He did not provide other details, stressing that the NAIA Expressway project negotiations are still ongoing.
Ang was defending the P11 billion winning bid of San Miguel unit Optimal Infrastructure Development Inc. for the 7.5-kilometer expressway project. Its lone rival for the toll road, the Metro Pacific group, made a bid of only P305 million.
“This proves that we bought at the right price,” he added.
Ang said San Miguel, which used to focus on the food and drinks businesses, is bullish about its toll road ventures.
He said they are looking at extending the South Luzon expressway (SLEx) all the way to Legaspi in Bicol. The first phase would connect the SLEX to Lucena in Quezon while the second phase would be from Lucena to Legaspi in Bicol. The cost of the project has yet to be determined.
He also revealed that the 88.58-kilometer 4-lane Tarlac-Pangasinan-La Union expressway project (TPLEx) from Tarlac City to Rosario in La Union would be opened by 2014. TPLEx is a joint project of San Miguel subsidiary Rapid Thoroughfares, Inc. and Consunji-led DMCI Group.
San Miguel has also been adding aviation ventures into its growing portfolio.
It is developing the airport at Caticlan, the gateway to tourist haven Boracay island, and has acquired a minority but controlling stake in legacy carrier Philippine Ailrines (PAL) in 2012.
Further expanding its business ventures with PAL's other owners, the Lucio Tan group, San Miguel formed a joint venture with the Tan group to bid for the expansion project for the Mactan-Cebu airport, the country's second busiest gateway.
Together with South Korea's Incheon Airport International Corp., the consortium partners are among the 7 groups vying for the P17 billion airport project. - Rappler.com