Metro Pacific to issue 791-M new shares in favor of Lyonnaise

The board of Metro Pacific Investment Corp. (MPIC) has approved the sale of 791 million new common shares of French water operator Lyonnaise Asia Water Ltd. Pte (LAWL) for P2.57 per share to raise additional financing for MPIC’s acquisition of additional interests in Maynilad Water Co.

Earlier, MPIC, the local flagship of First Pacific Co. of the Salim Group, said it plans to raise its stake in Maynilad  to 56.8 percent through a buyout offer of one of the water utility’s minority shareholders.

In a disclosure to the stock exchange, MPIC president Jose Ma. K. Lim said in line with its goal to consolidate its interests in Maynilad, MPIC has agreed to acquire 5.8 percent from LAWL, formerly Suez Lyonnaise des Eaux, a minority shareholder of Maynilad.

MPIC has agreed to purchase 236,000 Class B Maynilad shares from LAWL for P1,000 a share, or for a total of P2.03 billion.

The completion of the sale is expected not later than June 30, 2009.

The proposed acquisition will increase MPIC’s stake in Maynilad to 56.8 percent from its current 51-percent indirect holdings through DMCI-MPI Water Co. Inc.

MPIC has been investing heavily in the infrastructure sector. Recently, it acquired 67.1 percent of Manila North Tollways Corp., the concession holder of the North Luzon Expressway

Upon issuance, the new MPIC shares shall represent 7.75 percent of the fully diluted capital of MPIC based on the aggregate of 9.42 billion common shares of the outstanding capital stock of the company.

The board likewise confirmed the proposal to dispose of MPIC’s shareholdings in Landco Pacific Corp. upon terms and conditions to be approved by the MPIC board and after securing the approval of its shareholders for such disposition

A special stockholders’ meeting was set for Feb. 20 for the purpose of ratifying the resolutions.

MPIC earlier said it posted a core net income of P143.3 million for the January to September 2008 period, a considerable improvement from the restated core net loss of P170.6 million for the same period the prior year.

The substantial improvement in core income for the period was attributed to the strong performance of Maynilad and the contribution of Medical Doctors Inc. (MDI) or Makati Medical Center and Davao Doctors’ Hospital.