MPTC raises stake in Skyway

MANILA, Philippines - Metro Pacific Tollways Corp. (MPTC) has raised its stake in Citra Metro Manila Tollways Corp. (CMMTC) – the operator of the Skyway  to almost three percent.

In a disclosure to the Philippine Stock Exchange, MPTC said it has acquired the entire 148,000 shares held by Cezar Quiambao in Metro Strategic Infrastructure Holdings Inc. (MSIH) for P51.05 million.

The shares are equivalent to a 0.98-percent indirect equity interest in CMMTC. MSIH is a shareholder of CMMTC, a joint venture between Indonesian conglomerate Citra Group and the state-owned Philippine National Construction Corp.

Citra Group, a leading Indonesian infrastructure company whose core business includes expressway development and toll road operations, owns 66 percent of CMMTC.

Apart from Citra, PNCC and MISH, asset manager Avenue Asia also holds an 18 percent interest in CMMTC.

The first phase of Skyway is the 9.3-kilometer elevated expressway from Buendia, Makati to Bicutan, Parañaque, and the 13.5-km at-grade South Luzon Expressway from Magallanes to Alabang. It was built at a cost of more than $500 million.

The second phase, currently under construction, will extend the existing Skyway to Alabang in Muntinlupa at a cost of more than P10 billion. It is expected to create 30,000 jobs over a period of two years and forms part of the P38.1-billion road construction package designed to decongest the major roadways in and around Metro Manila.

The Skyway project was done on a build-transfer-operate basis wherein Citra financed the design and construction of the toll road, after which it will transfer ownership of the toll road to the government. The government then will allow Citra to recover its investment and generate some profits through the collection of tolls from motorists using the Skyway.

The Metro Pacific group had long been interested in increasing its investment in CMMTC since 2006 but the Indonesian group that controls the Skyway could not decide if it wanted to retain control or to sell. 

Meanwhile, MPTC also disclosed that it approved the declaration of cash dividends amounting to a total of P445 million or P0.089 per share to the corporation’s stockholders on record as of Sept. 9. The shares are payable on or before Sept. 30, 2010.