METRO Pacific Tollways Corp. (MPTC), a subsidiary of Metro Pacific Investments Corp. (MPIC) led by businessman Manny Pangilinan, has completed a deal to acquire a significant stake in an infrastructure company in Vietnam.
MPTC said it has acquired a 45 percent stake in CII Bridges and Roads Investment Joint Stock Co. (CII B&R) in Vietnam through a combination of share and bond purchases.|
In a disclosure to the Philippine Stocks Exchange, MPTC said it “now holds a significant minority equity interest equal to about 45 percent of the outstanding capital of CII B&R through a combination of purchase of CII B&R secondary shares from Ho Chi Minh City Infrastructure Investment Joint Stock Company (CII), and subscription to VND-denominated bonds issued by CII, which are exchangeable into secondary shares in CII B&R.”
CII B&R is majority owned by CII, one of the largest private infrastructure development companies in Vietnam with exposure in toll roads, water, real estate, and engineering and construction.
CII B&R is a toll road company based in Ho Chi Minh City in Vietnam with about eight toll road and bridge projects totaling approximately 123 kilometers, with existing traffic of about 46 thousand vehicles a daily.
CII B&R has a rich project portfolio comprising of five operating projects. These are the New Rach Chiec Bridge Project; the Phan Rang – Thap Cham Bypass (Phase 1) B.O.T. Project; the DT741Road Project; the Sai Gon 2 Bridge B.T. Project; and the Rach Mieu Bridge (Phase 1) B.O.T. Project.
Two projects are under construction, namely the Ha Noi Highway Expansion B.O.T. Project and the Expansion of National Highway 1, a B.O.T. project.
It has one project in the pipeline, the Binh Trieu 2 Bridge (Part 2 – Phase 2) B.O.T. Project, which it expects to secure within a few months.
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.
MPTC is the parent company of Manila North Tollway Corp. (MNTC) and is the tollway unit of MPIC, which in turn is owned by First Pacific Co. Ltd.
The company earlier said that First Pacific and MPIC would jointly bid for the $757-million DauGiay-Phan Thiet Expressway project in Vietnam. It said it would purchase bid documents but the lead entity would be First Pacific together with MPIC.
Vietnam’s Ministry of Transport (MOT) in 2013 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 Vietnam government has already identified Vietnamese conglomerate Bitexco Group Ltd. as the “first investor” in the project, which shall have an equity stake of at least 60
percent. The second investor shall hold the remaining stake, according to the MOT.
MPIC is looking for investment opportunities outside the country as part of efforts to diversify its investments.
With CII B&R’s experience in the Vietnam toll road industry and its strength in identifying and developing new projects, MPTC believes that CII B&R is the right partner to expand its operations in the Vietnam.