Infrastructure conglomerate Metro Pacific Investments Corp. is delisting from the Philippine Stock Exchange after a group of investors offered to buy out the shares held by the public.
Hong Kong-based First Pacific Co. Ltd., the parent company of MPIC, said in a disclosure to the Hong Kong Stock Exchange a consortium of bidders including local affiliate Metro Pacific Holdings Inc., Mit-Pacific and GT Capital Holdings Inc. would launch a tender offer to acquire 10.513 billion MPIC shares owned by the public at P4.63 apiece.
The total transaction is worth P48.67 billion.
Mit-Pacific is a joint venture of Japan’s Mitsui Co. Ltd. and JOIN which is a Japanese government-private sponsored infrastructure investment fund, while MIG is private company owned by MPIC chairman Manuel Pangilinan.
The offer price represents a 22-percent premium over the 12-month volume-weighted average trading price of MPIC. The Philippine Stock Exchange suspended trading of MPIC on Thursday. The stock closed at P4.26 on Wednesday.
First Pacific said the tender offer would allow minority shareholders to sell their shares at a premium and enable MPIC to bring in a strategic partner, Mitsui to create potential growth and expansion opportunities for the group through operational expertise in various sectors.
“Mitsui’s leading capabilities and expertise in the global infrastructure business will further contribute to solidifying MPIC’s unparalleled offerings and position in the Philippines,” First Pacific said.
Mitsui said in a statement the deal would allow it to acquire a portfolio of assets including core infrastructure assets such as those related to power, water and highways to capture the strong demand in the Philippines.
“By combining MPIC’s business foundation with Mitsui’s long-standing capabilities and experience in the global infrastructure business, we will contribute to the energy transition in the Philippines. In addition, we will support MPIC’s business development and create collaborative projects by leveraging our comprehensive capabilities in the digital field and other areas, thereby enhancing MPIC’s corporate value,” said Takehiko Ainoya, Mitsui general manager of division I (Asia) for infrastructure projects business unit.
Post tender offer, MPHI will own a 49.8-percent stake in MPIC, while GT Capital will increase its stake to 20 percent from 17.1 percent.
MIG will also own a 10.2-percent stake, while Mit-Pacific will have 20-percent interest in the company.
The tender offer will commence in May.
MPIC owns a 47.5-percent stake in Manila Electric Co., 52.8-percent interest in Maynilad Water Services Inc., 20 percent in Metro Pacific Health Corp. and 100 percent in Metro Pacific Tollways Corp.
