Wednesday, August 27, 2008 [ manilatimes.net ]
METRO Pacific Investments Corp. (MPIC) has signed the Sale and Purchase Agreement with First Philippine Holdings Corp. and Benpres Holdings Corp., both of which turned over two-thirds of Manila North Tollways Corp. (MNTC) and nearly half of Tollways Management Corp. (TMC) to the local unit of Hong Kong listed First Pacific Co. Ltd.
In a disclosure to the Philippine Stock Exchange Tuesday, MPIC said that it would now hold the 67.1-percent effective interest in MNTC, and a 46-percent effective interest in TMC.
MNTC holds the 10-year Supplemental Toll Operating Agreement to finance, design, construct, operate and maintain the toll roads, toll facilities and other toll facilities generating toll-related income of the North Luzon Expressway (NLEX).
MNTC has also the right to operate and manage the existing 83.7-kilometer NLEX and the 8.5-kilometer Subic-Tipo Expressway. The company also manages and operates the second phase of the project that would extend Circumferential Road 5 (C5) all the way to the Manila Port Area, crossing NLEX near the Valenzuela Interchange.
MPIC shall have the option to operate and manage, through the consortium of Egis Projects SA, First Holdings and TMC the 65.8-kilometer Subic-Clark-Tarlac Expressway (SCTEX), subject to the consent of the Bases Conversion Development Authority. The First Pacific unit will also acquire a 10-percent interest in the Private Infrastructure Development Corp., which was awarded the concession to extend the NLEX to another 88.5 kilometers from Tarlac to Rosario, La Union when completed in full in 2013.
“[We] are very much pleased with the progress of this transaction and [we] are looking forward to its closing and completion in November this year. [O]nce completed, this will position MPIC at the forefront of infrastructure development in the country, Jose Ma. Lim, MPIC president and chief executive officer, said.
The aggregate consideration of the proposed acquisition amounts to P12.262 billion, which will be settled in cash on closing and the assumption by MPIC of certain advances amounting to P462.6 million.
In addition, the proposed offer acquisition and the tender offer will be funded initially by shareholder advances from First Pacific and internally generated cash. --Katrina Mennen A. Valdez
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