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Sunday, April 14, 2024

MPTC-SMC tollway joint venture eyes IPO

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The joint venture of the country’s two largest toll road operators may list at the Philippine Stock Exchange this year, Metro Pacific Tollways Corp. (MPTC) chairman Manuel Pangilinan said Monday.

MPTC signed a memorandum of agreement with San Miguel Corp. (SMC) last year to jointly undertake the construction, operation and maintenance of the 87.96-kilometer Cavite-Batangas Expressway and Nasugbu-Bauan Expressway worth a combined P72 billion.

Pangilinan said they were looking at the joint venture company having earnings before interest, taxes, depreciation and amortization (EBITDA) of around P50 billion.

“We are at the stage that we are exchanging information about our tollways. Looking good. On combination, it will be a significant company in the Philippines with starting EBITDA of around P50 billion. It is a significant company if you are to put two together,” Pangilinan said.

He said the agreement “assumes it includes at least our Indonesian assets”, but will still be discussed with the San Miguel Group.

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“With the commitment of both parties, I don’t see why we can’t do it [listing] within the year. We look forward to what regulatory approvals may be needed from Indonesia and the Philippines. We are simply exchanging information now so we will have an idea of the tollways. It is good to have a significant companies for listing,” Pangilinan said.

The agreement last year encompasses the planned 27.06-kilometer CBEX that will establish a crucial link connecting CALAX Silang (Aguinaldo) Interchange to Nasugbu and the 60.90-kilometer NBEX that will provide seamless connectivity from Nasugbu to Bauan.

The groundbreaking is scheduled this year, and CBEX and NBEX are expected to be completed by 2027.

“Our shared commitment to nation-building has led us to this historic collaboration. Together, we aim to deliver world-class road networks that will serve as arteries of progress, growth and development for our country and the Filipino people,” San Miguel president Ramon Ang said earlier.

The route will traverse the towns of Silang, Amadeo, Tagaytay, Indang, Mendez and Alfonso in Cavite before crossing to Nasugbu and finally reaching Bauan.

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