NLEx Corp., formerly Manila North Tollways Corp., and Tollways Management Corp. on Monday signed a merger plan which is expected to be completed by the third quarter of 2017.
NLEx, the surviving corporation, is the concessionaire of North Luzon Expressway and Subic-Clark-Tarlac Expressway and the proponent of the Connector Road project linking NLEx and South Luzon Expressway.
TMC is engaged in the operations and maintenance of tollways, its facilities, interchanges and related works.
The merger will take effect within 15 days from and after the approval by the Securities and Exchange Commission of the articles of merger.
The transaction will be done through a share swap where shareholders will be given 2.7 MNTC common shares for every TMC share and 16.63 MNTC preferred shares for every TMC share.
NLEx will remain an indirect subsidiary of Metro Pacific Investments Corp. after the implementation of the merger.
NLEx reported a net income of P4.1 billion last year, up from P3 billion in 2015. Toll revenues reached P10.54 billion, or 25 percent higher than in 2015 due to higher traffic volume at NLEx and SCTEx.
Traffic at NLEx hit 220,010 average daily entries in 2016, or 9 percent higher than in 2015. Traffic at SCTEx also increased 16.6 percent to 45,026 daily vehicle entries last year.