By Ashley Erika O. Jose, Reporter
METRO PACIFIC Tollways Corp. (MPTC) is aiming for a 50-50 division in its planned merger with San Miguel Corp. (SMC), a company official said.
“For us, the 50-50 split is a very ideal scenario… It’s a balancing act. Our preference from our side is 50-50,” MPTC Senior Executive Arrey A. Perez told reporters on Wednesday.
He said the company plans to leverage its international assets, with reports suggesting a 90-10 division favoring Ang-led SMC in the expected tollway merger.
“Whatever it takes to make that happen — the 50-50 — if we’re going to include the international assets, we will include. For now, our mandate is to have a 50-50 arrangement,” Mr. Perez said.
The merger is unlikely to happen within the year, he also said.
“These things take time. These are huge assets. When you do a merger, you have to set your house in order.”
Currently, MPTC is studying the valuation of the companies, Mr. Perez said, adding that the company is not in a hurry to conclude the planned merger.
“At the end of the day, it’s all about arriving at a fair valuation of their tollway portfolios to justify their respective stakes in the merged entity,” Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message on Thursday.
“A 90-10 split favoring SMC over MPTC would feel more like a takeover than a merger. In such a structure, SMC would gain overwhelming control, leaving MPTC with limited influence on major decisions, especially given that SMC’s extensive tollway assets significantly outweigh those of MPTC,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.
Mr. Arce said in a 50-50 split scenario, balanced control would be retained and would allow both companies to leverage their strengths equally and allow both operations to benefit significantly through their strategic alignment.
He said a 50-50 merger is also expected to boost investor confidence as it would be seen as a stronger alliance by market investors.
“This could lead to a more stable post-merger stock performance as shareholders gain confidence in a collaborative, rather than contentious, business integration,” Mr. Arce said.
However, Mr. Arce said that a 50-50 ownership structure between the two companies might be difficult to achieve, as they operate differently, which could lead to a decision deadlock.
“In a 50-50, decision-making could be challenging if both parties disagree on strategic directions. Without a dominant party, gridlocks in decision-making could delay critical projects, especially in an industry where timely infrastructure projects are crucial,” Mr. Arce said.
In October, MPTC and its units together with Singapore’s GIC Pte. Ltd., a global institutional investor, finalized their investment cooperation valued at $1 billion for the acquisition of a 35% stake in PT Jasamarga Transjawa Tol, a major toll road operator in Indonesia.
MPTC is the tollway arm of Metro Pacific Investments Corp., which is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.
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