First Pacific acquires Lopez's toll road business
abs-cbnNEWS.com | 11/13/2008 6:06 PM
Printer-friendly version | 
Send to friend | 
Share your views
A unit of Hong Kong-listed First Pacific Co. has taken control of a key Philippine toll road for P12.26 billion ($250.24 million), the parties in the sale said Thursday.
Metro Pacific Investments Corp. (MPIC) purchased 99.8398 percent of First Philippine Infrastructure Inc., which was sold in July by the Lopez-controlled firms First Philippine Holdings Corp. (FPHC) and Benpres Holdings Corp.
The deal gives MPIC a 67.1 percent stake in franchise holder Manila North Tollways Corp as well as 46 percent equity in Tollways Management Corp.
The payment involved P11.8 billion in cash plus assumption of advances amounting to P462.6 million. Of the total amount, FPHC will get a share of P6.24 billion while Benpres will receive P6.02 billion.
MPIC president Jose Ma. Lim said the cash portion of the payment was sourced from First Pacific Co. of Hong Kong and proceeds from the sale of 10-year corporate notes.
Tollways Management operates the 83.7-kilometre North Luzon Expressway (NLEX), the main artery linking Manila to the northern Philippines and the nearby 8.5-kilometre Subic-Tipo Expressway.
The deal, MPIC's first major venture into transportation, also gives it the contract to build another link between NLEX and the port of Manila.
This is the second purchase by the MPIC of a Lopez company. The first was Maynilad, which distributes tap water to the western half of Manila.
MPIC also has interests in property development as well as the Philippines' first nationwide hospital chain.
"Our investment (in the toll road) will be the base of our assets in infrastructure that will provide increased opportunities and profitability for Metro Pacific," its president and chief executive Jose Maria Lim said in a statement.
Separately, First Pacific is also a key shareholder in leading telecom carrier Philippine Long Distance Telephone Co.- with AFP
