MPIC in talks with Air21

MANILA, Philippines - Metro Pacific Investments Corp. (MPIC) is in talks with Air21 as the infrastructure conglomerate is looking to make more investments in logistics firms.

“It’s under discussion,” MPIC chairman Manuel V. Pangilinan told reporters when asked if there are ongoing discussions with Air21.

“If something would happen, we’ll announce,” he said further.

MPIC said earlier it is looking to invest more in its logistics business and in acquisitions as it wants logistics to become a major pillar of the company.

MPIC made its foray in the logistics business in May last year when it acquired assets of Basic Logistics Corp., A1 Move Logistics Inc., Philflash Logistics Inc. and BasicLog Trading and Marketing Enterprises for P2.17 billion.

Earlier this year, MPIC completed the P280-million deal to acquire assets of Ace Logistics which is engaged in various aspects of logistics such as warehousing, courier express and parcel delivery, e-commerce delivery, trucking, freight forwarding, customs brokerage and domestic shipping.

MPIC is interested in logistics given the strong demand for such services, as well as the returns offered by the business.

Other conglomerates have also taken interest to enter the logistics sector such as SM Group through its acquisition of a 34.5 percent stake in 2Go Group Inc., and the Ayala Group to support its recent 49 percent acquisition in online fashion retailer Zalora.

In terms of unsolicited proposals for infrastructure projects, Pangilinan said MPIC recently submitted a proposal to rehabilitate, expand and handle the operations and maintenance (O&M) of the Clark International Airport.

Transport Secretary Arthur Tugade said earlier the government would no longer entertain unsolicited proposals for the project and just bid out the O&M later on to prevent delays in the event the bidding process would lead to litigation.

Pangilinan said MPIC remains interested in the O&M of the airport.

Other groups that have submitted proposals to the government for the development of Clark International Airport are GMR Infrastructure Ltd. of India and Megawide Construction Corp., and the group of JG Summit Holdings Inc. and Filinvest Development Corp.