Final stop for MPTC-SMC tollways merger likely in Q1

MANILA, Philippines — Talks on the planned mega-tollways merger between business titans Manuel V. Pangilinan and Ramon S. Ang are expected to reach their final stop early next year.

Metro Pacific Tollways Corp. (MPTC) president and CEO Rogelio Singson said both parties are hoping to finalize how to move forward in terms of the merger within the first quarter of 2025.

“We engaged an advisor to look at the valuation of both San Miguel Corp. (SMC) and MPTC. And that’s ongoing so we hope to get better numbers and hopefully come into an agreement as to a merger valuation,” Singson said.

“Our target is in the first quarter of 2025. But when it comes to just the valuation alone then that should be end of this year and then decide on how to move forward,” he said.

The inclusion of MPTC’s Indonesian projects is among those previously being studied by both companies for their planned joint venture given their cost and size.

“But definitely, since we already have signed our investment agreement in Indonesia, Indonesia will be part of the basket,” Singson said.

Last month, MPTC signed a $1-billion concession for a 35-percent stake in PT Jasamarga Transjawa Tol. The Indonesian toll operator operates a 676-kilometer segment in the Trans-Java Toll, considered as a crown jewel facilitating an average of 850,000 vehicles daily.

The merged entity of MPTC and SMC’s toll unit is targeted to be listed on the Philippine Stock Exchange.

According to Singson, this will be done next year after the merger is completed.

Pangilinan earlier said the combined entity is looking good to be a significant company in the Philippines.

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

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

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