Lopez Group mulls listing for FPIDC

In order to raise funds for the future expansion and improvement of the North Luzon Expressway (NLEX), the Lopez Group is considering a public listing for its subsidiary First Philippine Infrastructure Development Corp. (FPIDC), the company which holds the group’s investments in NLEX.

A highly placed official in the group told The STAR that aside from undertaking an initial public offering (IPO) of a portion of FPIDC’s shares, the Lopezes might also tap external sources to raise additional funds for the project.

The official pointed out that the additional exposure in the project only goes to show that the NLEX is an important business for the Lopez group.

The STAR reported yesterday that FPIDC plans to exercise its right of first refusal over shares held by foreign firms Egis and Leighton in the Manila North Tollways Corp. (MNTC) after learning that the two are planning to sell their respective stakes to Metro Pacific Corp. (MPC).

Under the shareholders’ agreement between FPIDC, Egis, and Leighton, existing stockholders have a preemptive right over the shares which any selling shareholder intends to dispose to an outsider.

MNTC holds the 25-year franchise to operate the North Luzon Expressway (NLEX) connecting metropolitan Manila to the provinces in the north.

Lopez-owned FPIDC controls the majority stake of 67.5 percent in MNTC. FPIDC is the company that holds the stakes of Lopez firms Benpres and First Philippine Holdings Corp. in MNTC, while Leighton Contractors Asia (owned by Leighton International Tollways Corp. of

Australia) and Egis Projects (subsidiary of Groupe Egis of France) own 17 percent and 13percent, respectively. State-owned Philippine National Construction Corp. (PNCC) has 2.5 percent.

MPC earlier disclosed that it is nearing a deal for the acquisition of the 30-percent combined stake of Egis and Leighton in MNTC, even as it is eyeing to acquire another 10 percent held by Benpres.

First Pacific Co. managing director Manuel V. Pangilinan said in an interview that Metro Pacific is making good progress‚ in its talks with Egis and has already agreed on the purchase price. "We are replicating the same formula of Egis with Leighton," he revealed.

Benpres has identified its stake in MNTC as one of the non-core assets that it plans to dispose in order to raise funds to meet maturing obligations. Another asset that it is willing to sell "for the right price" is telecommunications company Bayan Telecommunications Inc. (Bayantel).

However, First Philippine Holdings earlier said that it was not selling its shares in MNTC. "Unlike Benpres, First Philippine Holdings is not undergoing debt restructuring and therefore does not need to sell," a Lopez group official said.

The official added that Benpres will sell its stake in MNTC at the right price. According to reports, MPC has already began discussions with the Lopez Group for the acquisition of Benpres’ stake in MNTC.

Pangilinan’s group earlier offered to purchase for $40 million First Philippine Holdings’ stake in FPIDC but the offer was turned down because it was considered too low. The Lopezes believe that First Holdings‚ stake is worth at least $200 million.

FPIDC was incorporated in April 1994 and is a wholly —owned transportation infrastructure subsidiary of First Philippine Holdings and Benpres Holdings Corp., (BHC).

Metro Pacific’s investments in local infrastructure projects are currently limited to a minority stake in the Indonesia-controlled company that operates the Skyway. The 9.3-kilometer Skyway is a joint venture of state-owned PNCC and Indonesian firm P.T. Citra

Lamtoro Gung Persada through Citra Metro Manila Tollways Corp. Metro Pacific currently owns 10 percent of Citra Metro Manila through Metro Strategic Infrastructure Holdings.

Metro Pacific continues to search for investment opportunities in infrastructure projects in the Philippines, particularly toll roads. "Metro Pacific maintains an interest in potential opportunities in Philippine infrastructure projects generally, and in toll roads particularly, " the company said earlier.