Metro Pacific Investments Corp. (MPIC) has decided to abandon its planned sale of a 20 percent stake in Metro Pacific Tollways Corp. (MPTC), signaling a strategic shift toward alternative capital-raising efforts to manage its debt load.
MPIC chairman Manuel V. Pangilinan confirmed the change in direction, saying, “Hindi na siguro. Maybe not anymore,” when asked about the sale’s status. The move marks a pivot from earlier negotiations with a prospective investor for a private placement, which were disclosed in March but never materialized.
Instead of divestment, MPIC is now considering capital-raising instruments such as perpetual preferred shares or convertible preferred stock. These financing options are intended to generate between ₱20 billion and ₱40 billion, primarily to deleverage the tollways unit.
“For me personally, the perpetual preferred might be a good route for them,” Pangilinan said of the benefits of long-term, equity-like instruments that avoid immediate debt repayments.
The decision to retain the 20 percent stake underscores the strategic value MPIC places on its tollway operations, especially amid ongoing merger talks with San Miguel Corp. (SMC), which are expected to be finalized within the year. The companies had earlier paused toll road merger discussions to prioritize debt reduction.
In August 2024, MPTC and SMC inked a ₱72-billion deal to jointly develop the Cavite-Batangas Expressway and the Nasugbu-Bauan Expressway, totaling nearly 88 kilometers. The two groups already operate extensive toll networks across Luzon and the Visayas.
The latest decision reaffirms MPIC’s long-term commitment to its infrastructure assets while signaling a more conservative and flexible approach to capital management in a high-debt environment.
