By Zinnia B.
Dela Peña (The Philippine Star) | Updated December 28, 2012 - 12:00am
MANILA,
Philippines - Metro Pacific Investments Corp. (MPIC) is investing P6.77 billion
in Cavitex Holdings Inc., which owns the coastal road linking Metro Manila to
Cavite province, in the form of convertible notes.
In a
disclosure to the Philippine Stock Exchange, MPIC said it signed a financing and
cooperation agreement with Cavitex that will involve the issuance by the
Manila-Cavite toll expressway operator of convertible bonds to Metro Pacific
Tollways Corp. (MPTC).
The bonds are
convertible into new, non-voting redeemable convertible preference shares or
common shares of Cavitex subject to certain approvals and conditions.
Cavitex is a
14-kilometer toll road built in two segments running from Cavite to Laguna and
currently hosts 90,000 vehicle entries a day.
The
concession for this road extends to 2033 for the originally built road and to
2046 for a subsequent extension.
Under the
cooperation agreement, MPTC will provide management assistance to Cavitex
beginning Jan. 2, 2013.
Cavitex said
MPTC will be able to use its expertise in operating the 84-kilometer North
Luzon Expressway to improve the services that Cavitex currently provides to the
riding public and the fast- growing population of Cavite.
“I am pleased
that through our agreements, MPTC will be able to assist in the future
development of Cavitex and possibly adjoining roads in this rapidly growing
part of Metro Manila,” Manuel V. Pangilinan, chairman of MPIC and MPTC, said.
MPIC
president and chief executive officer Jose Ma. K. Lim, for his part, said:
“This is another step in our long signaled determination to further expand and
develop Metro Manila’s toll roads.”
Ramoncito S.
Fernandez, chief executive officer of MPTC, said they are looking forward to
delivering to motorists on the Cavitex the same standard of customer service
and excellence that MPTC already provides on the NLEX and the SCTEX.
For next
year, MPTC will allot between P2.5 billion and P3 billion for capital expenditures,
majority of which will go to the construction of a 2.1-km segment of the NLEX
from Cloverleaf to McArthur Highway in Valenzuela. This will be a four-lane
highway with an interchange and two vehicular overpasses.
______________________________________________________
