Metro Pacific Tollways Corp. (MPTC), a subsidiary of Metro Pacific Investments Corp. (MPIC) which is led by businessman Manny Pangilinan, has acquired an equity interest in a Vietnam infrastructure company through a share purchase and bond subscription deal.
In a disclosure to the Philippine Stocks Exchange (PSE), the company said it has entered into an equity investment and financing transaction with Ho Chi Minh City Infrastructure Investment Joint Stock Co. (CII).
It said the agreement “will result in MPTC holding a significant minority equity interest equal to about 45 percent of the outstanding capital of CII B&R (CII Bridges and Roads Investment Joint Stock Co.) through a combination of purchase of CII B&R secondary shares from CII, and subscription to VND (Vietnamese dong)-denominated bonds to be issued by CII, which are exchangeable into secondary shares in CII B&R.”
MPTC said it entered into a share purchase agreement with CII covering its purchase from the Vietnamese firm of 30 million shares of CII B&R, as well as a bond subscription agreement with CII covering the issuance by CII of and the subscription by MPTC to 1.02 million bonds each with a face value of 1 million Vietnamese dongs, which are convertible to 56.67 million shares of CII B&R.
CII B&R is a joint stock company established and existing under the laws of Vietnam.
MPTC said the purchase price for the acquired shares and subscription price for the bonds are to be paid upon completion of the closing conditions and deliverables.
Last year, MPIC said it was closely monitoring developments in major toll road project in Vietnam for their possible expansion project outside the country.
MPTC is the parent company of Manila North Tollway Corp. (MNTC) and is a subsidiary of conglomerate MPIC which is led by tycoon Manuel Pangilinan.
MNTC is controlled by MPTC, the tollway unit of MPIC, which in turn is owned by First Pacific.
Earlier, the company said that First Pacific Co. Ltd. and MPIC will jointly bid for a $757-million DauGiay-Phan Thiet Expressway project in Vietnam.
The company said that it would purchase bid documents but the lead entity is First Pacific together with MPIC.
In 2013, The Ministry of Transport (MOT) of the Government of Vietnam invited applications for a “second investor” in the design, construction, finance, operation and maintenance of the 98.7-kilometer DauGiay-Phan Thiet Expressway under a Public-Private Partnership (PPP) model.
The Prime Minester of Vietnam has already identified BITEXCO Group Ltd. as the “first investor” in the project. The MOT said that, in an incorporation of the project, the first investor shall have an equity stake of at least 60 percent, while the second investor shall hold the remaining stake.
MPIC is looking for investment opportunities outside the country as part of efforts to diversify its investments.