Tuesday, September 15, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
DIVERSIFYING CONGLOMERATE San Miguel Corp. has completed the acquisition of a 35% stake in the company that will construct the 88-kilometer Tarlac-Pangasinan-La Union Toll Expressway.
In a disclosure yesterday, San Miguel told the stock exchange that unit Rapid Thoroughfares Inc. had purchased the stake from Private Infrastructure Development Corp. (PIDC).
The P18-billion project, which will start construction between September and October, is expected to cut travel time from Manila to Baguio by half. The tollway contractor expects to complete the project in 2014.
The deal marked San Miguel’s formal entry in the infrastructure business after investing in heavier industries like power distribution and oil last year.
The food and beverage conglomerate had said it might increase its stake in the tollway company to 51%.
Last month, San Miguel said northern and central Luzon has the potential to become a "dynamic industrial corridor," with the proposed expressway as the catalyst. The tollway, it said, would make it easier to move goods and people from one point of Luzon to another.
San Miguel said its food and beverage business should benefit from such a development.
Aside from the PIDC project, San Miguel had disclosed plans to build a tollway connecting Nueva Ecija and the Cagayan Valley Road. It has also expressed interest to construct a road from Rosario, La Union to Laoag.
Moreover, the Cojuangco-led firm is seeking to acquire a stake in the operations of the Subic-Clark-Tarlac Expressway from the state-led Bases Conversion Development Authority.
In a separate disclosure, Consunji-led DMCI Holdings, Inc. also said the deal involving Rapid Thoroughfares has been completed. Earlier this month, DMCI Holdings said its board had waived the right to take a controlling stake in Private Infrastructure Development, in favor of San Miguel.
The listed holding firm said it would subscribe to 1.44 million common shares in PIDC out of a P3.5-billion increase in authorized capital, representing a 32.22% stake.
PIDC has sought approval from regulators to reclassify P1 billion in preferred shares to common shares. It plans tofurther hike authorized capital to P6.5 billion.
San Miguel shares closed flat at P67 apiece yesterday, while DMCI Holdings shares increased by P0.20 to P8.90 apiece. — D. G. K. Carreon>
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