Conglomerate San Miguel Corp. has consolidated its ownership in the $1.6-billion Mass Rail Transit Line 7 by acquiring the remaining 49-percent stake of businessman Salvador Zamora.
The deal, worth $100 million, resulted in San Miguel owning 100 percent of the rail company that holds the exclusive right to design, construct and complete the MRT Line 7.
San Miguel said in a disclosure to the stock exchange its wholly-owned subsidiary San Miguel Holdings Corp. signed on June 16 an amended share sale agreement with Universal LRT Corp. Ltd. and the Zamora Group to purchase an additional 49 percent equity interest in Universal LRT Corp BVI Ltd. and 100 percent equity interest in ULCOM Company Inc.
“The total consideration for the acquisitions of ULC BVI and ULCOM is $100 million which amount consists of payment for the sales as well as the outstanding shareholder advances made by each of ULC HK and Mr. Zamora to ULC BVI an ULCOM, respectively,” San Miguel said.
ULC BVI holds the exclusive right, obligation and privilege to finance, design, construct, supply, complete and commission the Metro rail Transit Line 7 project by virtue of the concession agreement dated June 18 2008 with the government through the Department of Transportation and Communications.
ULCOM, meanwhile, is the designated facility operator of MRT 7 project.
The acquisition of ULC BVI and ULCOM by San Miguel Holdings was completed July 1.
“With the completion of such acquisition, SMHC now owns 100 percent interest in ULC BVI and ULCOM,” San Miguel said.
San Miguel in November 2010 acquired a 51-percent equity interest in Universal LRT.
After achieving financial close, San Miguel in April broke ground for the MRT 7 project, which involves the construction of a 23-kilometer elevated train line from San Jose del Monte in Bulacan to the corner of North Avenue in Quezon City.
MRT 7 covers the construction of a 22.8-kilometer rail system from North Ave. in Quezon City, passing through Commonwealth Ave., Regalado Ave. and Quirino Highway up to the proposed intermodal transportation terminal in San Jose del Monte. The project will cover 14 stations.
It also includes the construction of a 22-kilometer road that will connect to North Luzon Expressway near the Bocaue exit.
The project, which will be completed in three to four years with the assistance of Hyundai Rotem and EEI consortium, will have 14 stations and will take only 30 minutes to travel end-to-end.
It will also connect to the MRT-3 and LRT-1 and serve over 800,000 passengers daily.
