Saturday, September 5, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
Consunji-led DMCI Holdings, Inc. has waived its right to a controlling stake in the company that will construct the 88-kilometer Tarlac-Pangasinan-La Union Toll Expressway project, in favor of diversifying San Miguel Corp.
"The board has [allowed] DMCI to sign the Waiver of Preemptive Rights in connection with the acquisition by San Miguel Corp. in Private Infrastructure Development Corp. (PIDC)," DMCI Holdings told the exchange on Friday.
DMCI Holdings said the move would pave the way for San Miguel to acquire 35% of PIDC, and subscribe to future issuances of new shares.
A DMCI Holdings official said the construction-based firm wants to have a significant minority stake. The listed holding firm — which holds a third of PIDC — told the bourse it would subscribe to 1.44 million common shares of PIDC out of a P3.5-billion increase in authorized capital.
The P18-billion tollway is expected to cut travel time from Manila to Baguio by half. Construction is expected to start either this month or next month.
San Miguel, through subsidiary Rapid Thoroughfares, Inc., had signed a subscription agreement for a 35% stake in PIDC.
The move sealed the non-binding agreement San Miguel signed with the company in July, and marked the conglomerate’s entry in the infrastructure business after investing in heavier industries like power distribution and oil refinery last year.
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