PPP: MPIC raises $200 million in overnight placement for rail and toll road businesses

Pangilinan-owned Metro Pacific Investments Corp. (MPIC) raised a total of $200 million (P8.87 billion) from an overnight share placement on February 9 to reduce debt and fund investments in its rail and toll road businesses. 

The company said in two separate disclosures to the stock exchange that it offered 1.812 billion new common shares priced at P4.90 each. The offer price was at a discount to the closing price of P5.24 on Monday. News of the sale at a discount depressed MPIC shares by 5.15 percent or 26 centavos in Tuesday’s trade, with the stock closing at P5.15 per share.

With the transaction, major stockholder Metro Pacific Holdings, Inc. (MPHI) reduced its interest in MPIC.
Of the net proceeds from the placement, MPIC will use P5.2 billion to reduce debt owed to its affiliate Beacon Electric Asset Holdings, Inc., P2 billion for investment in its rail business, and P1.6 billion for investment in its toll road business.

Light Rail Manila Corp. (LRMC) recently bagged the contract to extend LRT Line 1 under a 32-year concession agreement. As agreed upon between the LRMC and the government, the firm is allotting more than P10 billion this 2015 to operate and maintain the railway transit.

Meanwhile, its toll road unit Metro Pacific Tollways Corp. has taken over the P17-billion bridge project connecting Mactan Island to mainland Cebu, as well as other overseas ventures in Vietnam, Thailand and Indonesia.