MPTC acquires 45% stake in Vietnamese infrastructure firm

MANILA, Philippines - Metro Pacific Tollways Corp. (MPTC), the tollways unit of Metro Pacific Investments Corp. (MPIC), has completed its investment in a Ho Chi Minh City-based infrastructure developer.

In a disclosure to the Philippine Stock Exchange (PSE) yesterday, MPIC said MPTC now holds a 45 percent minority equity interest in CII Bridges and Roads Investment Joint Stock Co. (CII B&R).

MPIC said the investment in the Vietnamese company strengthens its expansion plans in the Southeast Asian country.

“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 Vietnam,” MPIC said.

The acquisition was made possible through a combination of purchase of CII B&R secondary shares from Ho Chi Minh City Infrastructure Investment Joint Stock Co. (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 investments in toll roads, water, real estate, and engineering and construction.

Located in Ho Chi Minh City in Vietnam, the company has a portfolio of about eight toll road and bridge projects spanning approximately a total of 123 kilometers and an existing traffic count of roughly 46 thousand vehicles a daily.

CII B&R has a rich project portfolio comprising five projects -- New Rach Chiec Bridge Project, Phan Rang – Thap Cham Bypass (Phase 1) build-operate-transfer (BOT) project, DT741 Road Project, Sai Gon 2 bridge B.T. project; and the Rach Mieu bridge (Phase 1) BOT Project.

In addition to these five ventures, two projects are under construction, namely the Ha Noi Highway Expansion BOT project and the expansion of national highway 1A BOT Project.

CII B&R has one project in the pipeline, the Binh Trieu 2 Bridge (Part 2 – Phase 2) BOT project.

The conglomerate’s investment in Vietnam follows its earlier acquisition of a minority stake in Thai operator Don Muang Tollway Public Co Ltd. in 2014.

MPIC holds interests in water utilities through the provision of water and sewerage services by Maynilad Water Holding Company, Inc., the holding company that operates Maynilad Water Services, Inc. and Philippine Hydro, Inc., as well as bulk water services by MetroPac Water Investments Corporation. 

It also has investments in power distribution through Beacon Electric Asset Holdings Inc. and healthcare.

Apart from this, the group has investments in rail through the operations and maintenance of the Light Rail Transit (LRT) and ticketing services by Automated Fare Collection Services, Inc. (AFCS).