MPIC plans to raise stake in Don Muang Tollway to 50 per cent
Play
One of the Philippines' leading basic infrastructure companies, Metro Pacific Investment Corp, is ready to discuss with Thailand's Don Muang Tollway Plc the possibility of raising the former's equity stake in the latter to 50 per cent.
According to Metro president and chief executive officer Ramoncito Fernandez, the company’s subsidiary FPM Infrastructure Holding plans to negotiate with Don Muang Tollway in the first half of next year about increasing the stake from its current level of 29.45 per cent.
Fernandez said Metro preferred to begin negotiations when Thailand’s military-led government was more established.
It got to this point after Hong Kong’s First Pacific Co Ltd and Metro invested 5.8 billion peso (Bt4.2 billion) to acquire 29.45 per cent of Don Muang Tollway in November last year.
That was done via FPM, which First Pacific holds a 75 per cent stake in.
Metro takes 75% stake
Metro acquired the remaining 75 per cent stake in June for US$101.25 million (Bt3.3 billion).
The government and the Phanichewa family are the stakeholders Metro plans to negotiate with.
Fernandez foresees good investment and commercial prospects for Don Muang Tollway, especially with the tollway expansion plan and the opening of a passenger terminal for low-cost airlines in Thailand.
Don Muang Tollway operates the 21.9 kilometre, six-lane elevated expressway section under a 27-year concession period which expires in 2034.
It recently raised the toll fare by 10 per cent following the return of low-cost airlines at Don Muang Airport.
In the first nine months of the year, the tollway averaged 77,000 vehicles per day – a figure that is expected to rise rapidly given Bangkok’s population and economic expansion and the slated launch of a second passenger terminal for low-cost airlines at Don Muang Airport in 2016.
