MVP group jacks up stake in NLEx operator

North Luzon Expressway. INQUIRER FILE PHOTO

The group of businessman Manuel V. Pangilinan has increased its stake in the company operating North Luzon Expressway after buying portion of France-based Egis Projects SA’s holdings, a filing to the stock exchange showed on Monday.

Metro Pacific Investments Corp. said its indirect stake in NLEx operator Manila North Tollways Corp. would increase to 71 percent following the acquisition of Egis’ 3.9 percent stake for P1.42 billion.

Egis, which reportedly wanted to reduce its holdings in the company, will continue to own about 9 percent of Manila North Tollways. Other major shareholders of the tollway operator are Henry Sy’s BDO Unibank Inc. and Philippine National Construction Corp.

The transaction, which was done through Metro Pacific’s tollroad arm Metro Pacific Tollways Corp., was completed after Pangilinan’s group exercised its right of first refusal to the shares of Egis.

This is the latest toll road deal for Metro Pacific, which has been eyeing acquisitions in the Philippines and overseas.

Last year, it participated in the acquisition of a minority stake in Thailand’s Don Muang Tollway Public Company Ltd., which has a 27-year concession ending in 2034 to operate a 21.9-kilometer elevated toll road that runs from central Bangkok to the northern part of the city.

Metro Pacific and parent First Pacific Co. Ltd. formed joint venture firm FPM Infrastructure Holdings Ltd., split 75-25 between them, respectively, to acquire 29.45 percent of Don Muang Tollway for P5.8 billion.

It was also open to further increasing its investment in the Thai tollroad company, Metro Pacific chief financial officer David Nicol said earlier.

The acquisition comes as Metro Pacific Tollways pursues the organic expansion of its existing tollroad amid a difficult regulatory environment.

The unit, for example, remains in long-running discussions with the government for the turnover of the 93.7-km Subic Clark Tarlac Expressway. It is also in negotiations with the government to start an elevated connector road linking NLEx to the South Luzon Expressway, operated by rival San Miguel Corp. and Indonesia’s Citra Group.