Metro Pacific Investments Corp. (MPIC) plans to divest up to 20-percent stake in its tollway unit to reduce debt, a top executive said Thursday.
MPIC chairman, president and chief executive Manuel Pangilinan said the company was in talks with an investor for a potential private placement.
Pangilinan did not specify how much the company wanted to raise, but said it would use the proceeds to repay Metro Pacific Tollways Corp.’s (MPTC) debt. He also did not reveal the identity of the potential partner.
Pangilinan earlier said MPIC aimed to raise P30 billion to P50 billion this year ahead of the planned merger with the tollway company of San Miguel Corp.
The merger talks were put on hold as MPTC said it is focused on completing the private placement, which could be finalized in the next two months.
He said the planned private placement would not diminish the urgency for MPTC to raise funds through the previously planned initial public offering (IPO).
Pangilinan stressed that MPTC is not legally required to conduct an IPO.
MPTC is the largest toll road developer and operator in the Philippines in terms of vehicle traffic volume, revenue levels, asset base and combined length.
It is the holding company of North Luzon Expressway, Subic-Clark-Tarlac Expressway (SCTEX), Cavite Expressway (CAVITEX), Cavitex C5 Link, and Cavite-Laguna Expressway (CALAX).
MPIC also agreed to sell an exchangeable bond to Mit-Pacific Infrastructure Holdings Corp. of Japan’s Mitsui Corp. worth P11.9 billion last year.
The exchangeable bond can be converted into 1.495 billion common shares, or equivalent to a 6.6-percent stake in MPTC.
MPTC raised funds in 2024 after acquiring a 35-percent stake in PT Jasamarga Transjawa Tol (JTT), a subsidiary of the Indonesian state-owned toll road company Jasa Marga for $960.3 million.
The investment was made in partnership with GIC, a global institutional investor.
JTT manages and operates the Trans-Java Toll Road segments in Java, Indonesia which has a total length of 676 kilometers.
MPTC’s core net income rose 9 percent to P6.4 billion in 2024, partly due to higher interest expenses on the acquisition loan related to JTT.
Toll revenues increased 16 percent to P31.6 billion, driven by a combination of toll hikes across all markets and traffic growth in the Philippines.
