MPIC raises $200M in overnight placement

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METRO Pacific Investments Corp. (MPIC), the listed infrastructure vehicle of tycoon Manny Pangilinan, raised a total of $200 million (P8.87 billion) from an overnight share placement on Monday to reduce debt and fund investments in its railway and toll road businesses.

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MPIC offered 1.812 billion new common shares priced at P4.90 each, the company said in two separate disclosures to the stock exchange.

The offer price was at a discount to the stock’s closing price of P5.24 on Monday. News of the sale at a discount depressed MPIC shares by 5.15 percent or 26 centavos in Tuesday’s trade, with the stock closing at P5.15 per share.

With the transaction, major stockholder Metro Pacific Holdings Inc. (MPHI) reduced its interest in MPIC.

Of the net proceeds from the placement, MPIC will use P5.2 billion to reduce debt owed to its affiliate Beacon Electric Asset Holdings Inc., P2 billion for investment in its rail business, and P1.6 billion for investment in its toll road business.

The MPIC-led consortium Light Rail Manila Corp. (LRMC) has taken over the LRT Line1 Extension Project under a 32-year concession agreement. The company is allotting more than P10 billion this year to operate and maintain LRT 1 as agreed upon between LRMC and the government.

Meanwhile, its toll road unit Metro Pacific Tollways Corp. is engaged in several domestic projects such as the P17-billion bridge project connecting Mactan Island to mainland Cebu, as well as other overseas ventures in Vietnam, Thailand and Indonesia.

For the first nine months of last year, MPIC grew its core net income by 15 percent to P6.5 billion from P5.6 billion in the same period the year before.

For 2015, MPIC is allotting P50 billion for its capital expenditures, which is 20 percent higher than the P35 billion programmed earlier mainly due to the LRT Line 1 Extension Project.

Incorporated in 2006, MPIC holds Pangilinan’s investments in water utilities (Maynilad), toll roads (MNTC and MPTC), electricity distribution (Manila Electric Company) and healthcare services (MPIC Hospital Group). MPIC is 55.8 percent-owned by Metro Pacific Holdings Inc.

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