METRO Pacific Tollways Development Corp. (MPTDC), a unit of Metro Pacific Investment Corp. (MPIC), will increase its share capital in operations and maintenance arm Tollways Management Corp. (TMC) to 67 percent after entering into a sale and purchase agreement with Egis Road Operation S.A.
The additional 7 percent acquisition, costing P442.3 million, is expected to be completed on or around April 4, 2017, according to an announcement of MPTDC’s ultimate parent First Pacific Company Limited on the Stock Exchange of Hong Kong website late Tuesday.
Incorporated in 2000, TMC operates and maintains the North Luzon Expressway and the Subic-Clark-Tarlac Expressway, its facilities, interchanges and related works.
“The company believes that TMC’s business in the operation and maintenance of the North Luzon Expressway and the Subic-Clark-Tarlac Expressway, its facilities, interchanges and related works will generate positive returns for the Group,” First Pacific said.
“Therefore increasing the Group’s shareholding and, thereby its entitlement to such returns, is beneficial to the Group, the Company and its shareholders,” First Pacific added.
According to the announcement, with effect from completion of the 7 percent acquisition, MPTDC will beneficially own 254,600 TMC Shares.
Last December, MPTDC entered into a sale and purchase agreement (SPA) with Egis for 14 percent of TMC, resulting in an ownership of approximately 60 percent of the issued share capital of TMC.
MPTDC is a wholly-owned subsidiary of MPIC, a Philippine-based unit investment holding company of First Pacific.
Egis is a French engineering and infrastructure group which buys and holds shares of other companies, and is an original incorporator of TMC.