MANILA -Manuel V. Pangilinan-led Metro Pacific Investments Corp. (MPIC), the Philippine-listed infrastructure giant that controls some of the country’s largest utilities, has set a P48.6-billion tender offer in line with its move to go private after years of speculation that heated up in the past few months.
The company’s controlling shareholders- including billionaire Anthoni Salim and the Ty family conglomerate GT Capital Holdings, Pangilinan’s private company and a Japanese venture that includes industrial giant Mitsui- are buying out minority shareholders that own 36.6 percent of MPIC at P4.63 per share.
In a stock exchange filing on Thursday, MPIC requested a two-day trading suspension until April 28 to allow investors sufficient time to review the deal.
The tender offer price is an 8.68-percent premium over the company’s closing price before the deal was announced.
Shares of the company have gained over 12 percent days before the disclosure. These touched a recent high of P4.62 recorded last Feb. 14 as rumors of delisting spread given the company’s “cheap” stock market valuation.
The price represents a 22-percent premium over the one-year volume weighted average price, the company noted in the filing.
The intention was to delist MPIC from the Philippine Stock Exchange.
“Upon successful delisting of MPIC, MPIC intends to continue its business as currently conducted, particularly of owning and managing its portfolio of investments, as well as investing in other sectors of the economy, in the Philippines and other parts of South East Asia,” Metro Pacific’s Hong Kong-listed parent company First Pacific Co. Ltd said.
It explained that the delisting of MPIC will also “simplify compliance with listing and disclosure requirements.”
“There will be opportunity to better align strategy and operational initiatives which is expected to result in more efficient utilization of resources between the group and MPIC and, therefore, is expected to result in a more efficient and cost-effective group structure for the company,” First Pacific said.
Metro Pacific’s portfolio includes electricity distribution giant Manila Electric Co., water concessionaire Maynilad Water Services Inc., toll roads such as the North Luzon Expressway and Subic Clark Tarlac Expressway, the Light Rail Transit Line 1 and a chain of private hospitals, including Makati Medical Center and Asian Hospital and Medical Center.
The tender offer parties are Metro Pacific Holdings Inc., owner of 46.1 percent of MPIC; GT Capital Holdings Inc., owner of 17.1 percent; Mit-Pacific, a venture between Mitsui and Japanese government investment fund JOIN, and MIG, a company controlled by Pangilinan.
“The proposed transaction also brings in a strategic partner, Mitsui, which creates potential growth and expansion opportunities to MPIC through their operational expertise in various sectors,” First Pacific said.
The Mitsui venture alone is seeking 20 percent of Metro Pacific while Pangilinan’s company will get a 10- percent stake.
Metro Pacific Holdings may increase its stake to nearly 50 percent while GT Capital will increase its stake to 20 percent once the transaction is completed.
Metro Pacific considers delisting from PSE
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