MPIC buys 45% shares in Vietnam toll road firm

MANILA, Philippines – Metro Pacific Investments Corporation (MPIC) announced that it is acquiring 45% ownership of a Vietnamese toll road company to the tune of 1.954 trillion dongs ($91.54 million).

In a disclosure to the Philippine Stock Exchange, MPIC said the buy-in of a sizable stake in CII Bridges and Roads Investment Joint Stock Company was closed through its toll road unit Metro Pacific Tollways Corporation (MPTC).

The transaction involved MPTC’s purchase of CII B&R’s 30 million equity shares, as well as its 1.02 million bonds.

MPTC is the country’s largest toll road company, which bagged contracts involving tollroads North Luzon Expressway, Subic-Clark-Tarlac Expressway, Cavite Expressway, among others.

According to MPIC, the combined value of the said equities and bonds are equivalent to 56.67 million shares of CII B&R, marking their second multi-million dollar investment outside the Philippines.

MPIC currently holds 29.45% ownership in Dong Muang Tollway Public Company Ltd, the concessionaire of Bangkok’s Uttaraphimuk elevated tollway.

The Pangilinan-led infrastructure giant has been looking at Vietnam as an opportunity for its infrastructure and water arms to expand.

Earlier, it expressed interest in bidding for the $750-million Dau Giay-Phan Thiet Expressway project, a public-private partnership (PPP) infrastructure contract conceptualized by Vietnam’s transportation body.

MPIC also has interests in water, rails, power, and hospitals through Manila Electric Company, Maynilad, Makati Medical Center, among others.

In October 2014, MPIC’s joint venture with Ayala Corporation, Light Rail Manila Consortium, bagged the concession agreement for the P65-million ($1.46-million) Light Rail Transit Line 1 Cavite extension project. – Rappler.com

$1=P44.55

Ho Chi Minh image from Shutterstock