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Pangilinan said his tollway unit aims to close the transaction with Ramon Ang’s firm by 2026
MANILA, Philippines – Metro Pacific Tollways Corporation (MPTC) is seeking to raise up to P50 billion in capital ahead of its potential merger with San Miguel Corporation (SMC) Tollways, its chairman Manuel Pangilinan said.
On the sidelines of the Management Association of the Philippines’ inaugural meeting on January 15, the Filipino tycoon said his tollway unit aims to raise the funding via a private placement. MPTC aims to use the proceeds for debt payments to prepare its balance sheet for the merger.
Pangilinan said MPTC aims to close the transaction with SMC Tollways by 2026.
The planned merger came after MPTC and SMC Tollways signed an agreement in 2023 to jointly construct the P72 billion Cavite-Batangas and Nasugbu-Bauan expressways.
Closing LNG deal
Apart from his tollway unit, Pangilinan also said his group aims to close a three-way liquefied natural gas (LNG) deal between the Manila Electric Company (Meralco), AboitizPower and San Miguel Global Power.
This comes after the Philippine Competition Commission (PCC) approved the firms’ joint acquisition of two gas-fired power plants and an LNG terminal in Batangas for $3.3 billion last December.
Pangilinan expects the deal to be finalized within the next four or five weeks. “It’s [closing the deal] massive documentation and there will be some movement of funds, substantial movements,” he said.
The Energy Regulatory Commission earlier said it will review the deal to ensure the deal complies with market share limitations. Under the Electric Power Industry Reform Act of 2001, firms cannot own, operate or control more than 30% of a grid’s installed generation capacity and 25% of the national installed generation capacity. – Rappler.com
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