Vol. XXII, No. 10 [ BusinessWorld Online ]
Friday, August 8, 2008 | MANILA, PHILIPPINES
CONGLOMERATE Metro Pacific Investments Corp. (MPIC) will pay P12.2 billion to buy a toll road company from First Philippine Holdings Corp.
and its parent group.
Lopez-held First Holdings and parent firm Benpres Holdings Corp. said the deal valued First Philippine Infrastructure, Inc. (FPII) at P2.467 per share, a big discount from yesterday’s closing price of P7.50 when the shares surged 50%.
"A share purchase agreement is now being negotiated by the parties," First Holdings said.
The interests of First Holdings and Benpres are held through First Philippine Infrastructure, Inc. (FPII). FPII, formerly City Resources Corp., is 51% and 49% owned by First Holdings and Benpres, respectively.
Approximately 0.16% of the firm is publicly held.
FPII owns 67.1% of Manila North Tollways Corp. and 46% of Tollways Management Corp. which financed, designed, built and operates the North Luzon Expressway.
First Holdings will receive P6.2 billion from the sale, while Benpres will receive P6 billion for its stake.
Macquarie Capital (Singapore) Pte Ltd. served as financial adviser to Benpres and First Holdings on the sale.
MPIC said separately that the acquisition and a resulting tender offer to minority investors of FPII would be funded initially by its parent First Pacific Co. Ltd. of Hong Kong.
The acquisition, expected to be closed in November, includes First Holdings’ stake in a newly opened expressway linking two growing economic zones north of the capital — Subic Bay Freeport and the Clark Economic Zone.
"Our investment in FPII is in keeping with our goal to consider carefully new investment opportunities, particularly in infrastructure, that will deliver recurring profits and strong cashflows," MPIC president Jose Ma. Lim said in a statement.
MPIC said P11.8 billion would be settled in cash on closing and its assumption of P462.6 million in advances.
"The acquisition will not only represent a key area of growth in the infrastructure business for MPIC, but also enhance the economic growth of central and north Luzon," MPIC Chairman Manuel V. Pangilinan said.
"MPIC recognizes that the steady increase in population and urbanization should keep pace with the provision of domestic infrastructure that links resources to their channels and destinations," he added. — Reuters with a report from KJRL
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