MVP, RSA hope to seal tollway deal this year

MANILA, Philippines — Negotiations on the planned merger of the toll road units of Metro Pacific Investments Corp. and San Miguel Corp. are moving smoothly so far, with tycoons Manuel V. Pangilinan and Ramon Ang bullish on sealing the deal within the year.

In an interview, Pangilinan told The STAR that both parties continue to be in the process of sharing information so that they would have a “better sense of the numbers and how the structure could be developed as a consequence of the numbers.”

“It is still early stages, but it’s a good start,” he said.

Pangilinan is confident things would be sorted out and that the merger could push through this year.

“That’s the goal anyway,” he said.

Ang is also optimistic that the merger will be finalized this year.

“We hope so,” Ang told The STAR. “Talks are ongoing because the problems being looked at are the concession agreements and when they will expire. So those things.”

Ang said the inclusion of the Indonesian business of Metro Pacific Tollways Corp. (MPTC) in the proposed merger was also part of the due diligence being undertaken.

MPTC, through Metro Pacific Tollways Asia, has a significant stake in two major infrastructure companies in the Pan-ASEAN region: PT Nusantara Infrastructure in Indonesia and CII Bridges & Roads of Vietnam.

The company is also expected to win the bid for a 35-percent share in PT Jasamarga Transjawa Tol, the concessionaire managing the 676-kilometer portion of the Trans-Java Toll.

In the Philippines, MPTC operates the North Luzon Expressway, Subic-Clark-Tarlac Expressway, Manila-Cavite Expressway, Cavite-Laguna Expressway and Cebu-Cordova Link Expressway.

SMC operates the Tarlac-Pangasinan-La Union Expressway, Skyway System, Southern Tagalog Arterial Road, South Luzon Expressway and NAIA Expressway.

Once finalized, the merged entity is targeted to be listed in the Philippine Stock Exchange.

Pangilinan earlier said the combined entity could become a significant company in the Philippines.

“Combined, starting EBITDA is probably at least P50 billion, so that is a significant company if you were to put it together,” he said, referring to earnings before interest, taxes, depreciation and amortization.

The two companies also intend to put up elevated toll roads on congested thoroughfares like C5 Road and EDSA.