Metro Pacific Investments Corp. (MPIC) on Thursday announced the sale of its 20 percent stake in toll road subsidiary, Metro Pacific Tollways Corp. (MPTC), to a foreign investor. The deal, valued at “several billions” of pesos, is part of MPIC’s ongoing drive to reduce MPTC’s debt.
Manuel V. Pangilinan, MPIC chairman, president, and CEO, confirmed that only one foreign player would acquire the stake. The funds raised will go toward addressing MPTC’s financial obligations, which include a significant portion of MPIC’s total debt.
“We are prioritizing the debt reduction for MPTC,” Pangilinan said, adding that the company plans to raise between P30 billion and P50 billion through a private placement of new shares. Unlike its sister company, Maynilad Water Services, which must go public by next year, MPTC’s transaction is a private offering.
Chaye Cabal-Revilla, MPIC chief financial officer, explained that of MPIC’s P64.99 billion debt, approximately P30 billion is tied to MPTC, which will be refinanced through the sale. “The remaining debts will be addressed using internally generated funds,” she said.
The move is part of MPIC’s strategy to clean up MPTC’s financial position in preparation for a planned merger with San Miguel Corporation’s tollway business. Pangilinan expressed hope that the merger, which he described as “much more complicated,” could be finalized by the end of the year or early next year.
MPTC operates a range of major tollways, including the North Luzon Expressway (NLEX), Subic-Clark-Tarlac Expressway (SCTEX), and Cavite-Laguna Expressway (CALAX). Meanwhile, SMC Tollways manages key infrastructure such as the South Luzon Expressway and Skyway Stage 3.
