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The joint expressway project of Metro Pacific Tollways Corp. (MPTC) and San Miguel Corp. (SMC) in Southern Tagalog is set to begin construction soon, even as merger talks between the tollway giants remain on the backburner.
MPTC Chairman Manuel V. Pangilinan said the two companies have agreed on the alignment of the 27.06-kilometer Cavite-Batangas Expressway (CBEX).
“My impression is the principles of the partnership have been agreed. The alignment has been agreed. So we should start working soon,” Pangilinan told reporters last week.
In 2018, MPTC was granted the original proponent status to the proposed 50.4-kilometer Cavite-Tagaytay-Batangas Expressway (CTBEX) by the Department of Public Works and Highways (DPWH).
Similarly, SMC's tollway unit bagged the approval from the local governments of Cavite and Batangas for CBEX and Nasugbu-Bauan Expressway (NBEX).
The said projects aim to provide seamless connectivity between Cavite and Batangas through Tagaytay City.
In 2023, MPTC and SMC agreed to set aside their differences to ink a ₱72-billion agreement to jointly design, build, and operate the CBEC and NBEX, which would span a combined 88 kilometers.
CBEX will establish a link between Nasugbu, Batangas to the Cavite–Laguna Expressway (CALAX) in Silang, Cavite. Meanwhile, the 60.90-kilometer NBEX will connect Nasugbu to Bauan, Batangas.
The groundbreaking for both projects was originally slated for 2024, with a target completion date in 2027.
Pangilinan, who also chairs MPTC’s parent company Metro Pacific Investments Corporation (MPIC), said there is still no date for the planned groundbreaking so far.
With these developments, a merger between MPTC and SMC Tollways Corp. was expected to be realized.
Pangilinan earlier disclosed that he is hoping to close this deal within the year or in 2026.
However, he has since deferred discussions on the matter as MPTC is still raising funds to pay down debt.
“We have to raise money first for our tollways ‘pag natapos na ‘yun (once that's done) then we can go to merger talks,” he said.
MPIC reported in 2023 that its subsidiary MPTC garnered the highest debt among its units at approximately ₱150 billion.
MPTC is now planning to raise ₱30 billion to ₱50 billion through a private placement for the deal.
This comes as the tollway operator moves to raise funds through an initial public offering (IPO), which could launch early next year.
Pangilinan is keen on selling as much as a 20-percent stake in MPTC to settle its debt payments.
In September of last year, a joint venture between Mitsui & Co. Ltd. and Japan Overseas Infrastructure Investment Corp. for Transport and Urban Development converted part of its stake in MPIC for 6.6 percent of MPTC.
This led to the reduction of MPIC’s stake in MPTC from 99.9 percent to 93.3 percent.
Pangilinan said the Japanese firm has already converted half of its MPIC shares, with plans of gaining more stake in MPTC being considered.
