Lopezes mull buyout of partners in MNTC

First Philippine Holdings Corp. (FPHC), the holding firm for all power generation and tollways interests of the Lopez family, has expressed interest to buy out its minority partners in Manila North Tollways Corp. (MNTC), the operator of the North Luzon Expressway (NLEX).

FPHC chairman and chief executive officer Oscar M. Lopez said the move is in line with the company’s plan to firm up its ownership position in NLEX and further enhance its tollways portfolio.

MNTC is owned 67.1 percent by FPHC unit First Philippine Infrastructure Development Corp., Australia-based Leighton Asia Ltd. (16.5 percent), French firm Grouppe Egis (13.9 percent), and the state-run Philippine National Construction Corp. (2.5 percent).

"To the extent that our minority partners PNCC, Egis and Leighton are prepared to divest of their ownership stakes in NLEX, we would most definitely be interested in acquiring their stakes if the price is right.

"We believe that over the long term as the Central Luzon economy develops and as both Clark and Subic become major logistics and transportation hubs, the full economic promise of the NLEX will be realized," he added.

FPHC president and chief operating officer Elpidio Ibañez said about three other companies, including Metro Pacific Corp. have expressed interest in acquiring acquire a significant stake in MNTC.

MNTC needs $371 million to upgrade and rehabilitate the 84-kilometer NLEX, one of the biggest infrastructure projects in the country undertaken over the last 10 years.

To further expand its tollways business, FPHC is considering bidding for the operation and maintenance of the Subic-Clark-Tarlac Expressway under the Bases Conversion Development Authority (BCDA).

Lopez said FPHC is also actively pursuing the second phase of the NLEX project, extending its reach eastward to Mindanao Avenue, bypassing EDSA and the Balintawak interchange.

Eventually, the company intends to explore opportunities for high-speed, limited access links to both C-5 and the South Luzon Expressway, Lopez said.

As for its power generation business, FPHC is eyeing selected plants that the government is offering for sale.

If attractive investment opportunities do not develop within the country, Lopez said subsidiary First Generation Corp. may eventually seek opportunities overseas.

Lopez said the FPHC also plans to further build its electrical and electronics manufacturing businesses.

Newly-formed subsidiary First Philippine Electric Corp. or First Philec is working closely with Cooper Industries, a global manufacturer to produce and supply its transformer requirements in the region.

Philec is also supplying dry-type transformers to American Power Conversion, a global manufacturer of UPS for large users requiring uninterrupted power supply.