MPIC looking to sell 20% of tollway unit

METRO Pacific Investments Corp. (MPIC) is looking to sell up to 20 percent of its stake in Metro Pacific Tollways Corp. (MPTC) to help reduce the company's debt, MPIC Chairman, President and CEO Manuel V. Pangilinan said.

MPIC is in discussions with an investor and the planned stake sale is to be done via a private placement tentatively within the next two months, Pangilinan said on Wednesday.

"Yes, we plan on selling up to 20 percent. We also have a total figure in mind on how much we want to get, but that is hard to discuss. The amount could be in billions [of pesos]. Moreover, for the proceeds, its main use will be the reduction of debts MPTC has," Pangilinan said.

"With regard to possible investors, we have been in talks with several previously, but now we are down to just one investor. Also yes, this is part of MPTC's plan to raise around P30 to P50 billion this year to lessen debts. The said sale will be done via a private placement and possibly closed maybe in the next two months or so."

Pangilinan confirmed that MPIC recently concluded the sale of 6.6 percent of its shares in MPTC to Mit-Pacific, a joint venture between Mitsui & Co. Ltd. and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development.

"There will be none after that (the 20-percent stake sale). Besides, we have just also recently concluded our stake sale with Mit-Pacific as well, so we will stop there," he added.

Last September, MPIC said that it had entered into an agreement with Mit-Pacific for a share buyback and exchangeable bond issuance that would allow the latter to acquire a stake in MPTC.

MPIC bought back 4.58 million common shares representing 50 percent of the common shares held by Mit-Pacific that reduced the latter's interest in MPIC to 7.8 percent from 14.5 percent.

MPIC then issued an exchangeable bond to Mit-Pacific for a total subscription price of P11.9 billion, exchangeable for 1.495 million common shares of MPTC or a 6.6-percent economic interest in the toll roads firm.