By Revin Mikhael D. Ochave, Reporter
METRO Pacific Investments Corp. (MPIC) is set to list at the stock market its tollways and water businesses once the listed holding firm completes its voluntary delisting plan, according to its top official.
“After delisting, we will list our tollways. Maynilad has got to list by 2026. We will list our major subsidiaries,” MPIC Chairman, President, and Chief Executive Officer Manuel V. Pangilinan said on the sidelines of a mining conference on Wednesday.
“Most probably, the tollways unit will be the first to list,” Mr. Pangilinan said, adding that the listing at the local bourse will be by next year.
MPIC’s tollways unit is Metro Pacific Tollways Corp. (MPTC) while Maynilad Water Services, Inc. is managed by a joint venture among MPIC, DMCI Holdings, Inc., and Marubeni Corp.
Maynilad is a water and wastewater service provider for Metro Manila’s west zone and nearby areas while MPTC operates tollways such as North Luzon Expressway, Subic-Clark-Tarlac Expressway, Manila-Cavite Toll Expressway, Cavite-Laguna Expressway, Cebu-Cordova Link Expressway, and the NLEX Connector Road.
The water provider is mandated to list on the Philippine Stock Exchange under its franchise and the revised concession agreement signed with the government.
Aside from toll operations and water, MPIC has business interests in sectors such as power via Manila Electric Co. (Meralco), rail through Light Rail Manila Corp., healthcare, logistics, and agribusiness.
Sought for comment, China Bank Capital Corp. Managing Director Juan Paolo E. Colet said that MPTC and Maynilad would be “very attractive initial public offering (IPO) candidates.”
“They are strong cash-generating businesses that have good room for long-term growth. I expect many investors will look at them as healthy dividend stocks as well as demographic plays,” Mr. Colet said.
“The tollways assets can actually be structured into and listed as a real estate investment trust, which would make it the first of its kind in the Philippines,” he added.
COL Financial Group, Inc. Financial Analyst George Ching said the attractiveness of the two possible IPOs will depend on the valuation.
“If they will sell it at a cheap price, then it will be good,” Mr. Ching said via mobile phone.
“Between the two though, toll roads have more expansion opportunities. Maynilad is more straightforward, it’s just the concession agreement,” he added.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the two planned listings would provide opportunities for local and foreign investors.
“These would provide local and foreign investors the opportunity to invest in infrastructure units that may also need large capital for capital expenditure for the coming years,” Mr. Ricafort said, adding that the units will also await “better market conditions alongside greater profitability to realize and maximize the highest possible selling price/valuations once they list at the stock market”
Meanwhile, MPIC said in a stock exchange disclosure on Wednesday that the company’s tender offer is closed.
“The total of tendered shares, excluded shares and other non-public shares is equivalent to 97.22% of MPIC’s total issued and outstanding listed shares and has exceeded the threshold required to complete the voluntary delisting,” MPIC said.
“The bidders stated that the tender offer is now closed,” it added.
According to MPIC, the cross date is on Sept. 26 while the settlement date is on Sept. 28.
“When the tendered shares are accepted and crossed, the bidders expect MPIC’s public float to fall to 2.78% whilst the total of tendered shares, excluded shares and other non-public shares will be above the voluntary delisting threshold of at least 95% and the bidders anticipate MPIC’s voluntary delisting around October 2023,” the disclosure said.
Mr. Pangilinan said that state-led Government Service Insurance System (GSIS) will be entitled to a board seat “post-delisting.”
GSIS recently acquired an additional stake in MPIC, which resulted in an aggregate holding of about 3.44 billion common shares, equivalent to 12% of the company’s total issued and outstanding listed shares.
“This is welcome news to the tendering shareholders as they can now look forward to the payment of their shares next week,” China Bank Capital’s Mr. Colet said on the closing of the tender offer.
“The seat will allow GSIS to take a more active role in the corporate governance and business direction of MPIC. This is very important to protect the pension fund’s interests and sizable investment in the company,” Mr. Colet added.
On Wednesday, shares of MPIC at the local bourse closed unchanged at P5.11 apiece.
Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.
