MANILA - Diversified conglomerate San Miguel Corp. (SMC) and Consunji-led DMCI Holdings Inc. have formalized their entry in the Filipino group building the multibillion-peso Tarlac-Pangasinan-La Union Exrpressway, north of Manila.

The two companies said in separate disclosures that they have completed the acquisition of their respective stakes in Private Infrastructure Development Corp. (PIDC).

SMC, through Rapid Thoroughfares Inc., sealed the purchase of a 35% stake in PIDC, making it the biggest shareholder in the company. DMCI, on the other hand, bought a 32% stake. The two own majority or 67% of PIDC.

The remaining 33% was distributed among small shareholders, including First Balfour Inc., DM Wenceslao and Associates Inc., CM Pancho Construction Inc., RD Policarpio and Co. Inc., JV Angeles Construction Corp., JE Manalo and Co. Inc., New Kanlaon Construction Inc., EEI Corp. and Rockford Development Corp.

SMC president and chief operating officer Ramon Ang said the food and beverage conglomerate, which retains the option to acquire up to 51% of PIDC, will have management control of the tollways consortium.

However, representation to the board will be proportional to ownership, according to DMCI president Isidro Consunji.

The Tarlac-Pangasinan-La Union Expressway is an 88.5-kilometer, 4-lane highway that will cut travel time from Manila to Baguio by half.

To fund the P19-billion road project, PIDC intends to tap into owners' equity, which is eyed to be raised to P6.5 billion from the present P4.5 billion. The consortium will source the remainder from government subsidies and bank loans.

PIDC chief financial officer Myra Reinoso earlier said that the expressway may begin construction by the fourth quarter of the year. It is expected to be completed in 2013. With a report from Business Mirror