Investing.com | Editor Rachael Rajan
Published November 30, 2023 at 12:44 pm ET
PHILIPPINES – Metro Pacific Tollways Corp. (MPTC) has announced the postponement of its initial public offering (IPO) to 2025 as the company engages in merger talks with the toll road division of San Miguel Corporation (SMC). This strategic move follows the recent delisting of MPTC’s parent company, Metro Pacific Investments (OTC:MPCIY) Corp. (MPIC), from the Philippine Stock Exchange following a P28.4 billion tender offer to buy out minority shareholders.
MPTC, which operates major expressways such as NLEX and SCTEX, had originally planned an initial public offering in the third quarter but has shifted its focus to possible consolidation with SMC’s expressway assets, which include TPLEX and STAR Tollway. The merger talks follow a P72 billion cooperation agreement signed in August 2023 to develop the Cavite-Batangas Expressway and another route south of Manila. These projects are expected to be crucial to the listing of the future joint venture.
The decision to postpone the IPO was announced today by MPTC President Rogelio Singson, who cited the need for a comprehensive financial review and third-party assessments, which are expected to take approximately two years. This reassessment is necessary to ensure the financial stability and strategic direction of the combined company prior to the IPO.
The collaboration between MPTC and SMC has already resulted in Ramon Ang, President of SMC, personally investing in MPIC and joining its board. This has further fueled discussions about integrating the two giants’ toll operations into a single, more robust entity.
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Written by: Investing.com
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