Quantcast
Latest Stories

SMC, Citra plan infra joint venture

$1-B fund for toll roads in PH, Indonesia

By

CONGLOMERATE San Miguel Corp. and Jakarta-based Citra Group is building up a war chest worth $1 billion for infrastructure projects in the Philippines and Indonesia, with the aim of becoming Southeast Asia’s biggest toll road player.

At a briefing Friday, Citra Group chair Shadik Wahono said the company planned to form a joint venture with San Miguel that would eventually go public, either through an initial public offering (IPO) in the Philippines or through the issuance of toll road asset-backed securities called Business Trusts in Singapore.

The new holding firm, which has yet to be named, will handle both groups’ extensive toll road assets in Indonesia and the Philippines.

“The consortium’s balanced mix of revenue-producing mature assets and strong development projects gives bright prospects for its future,” Wahono said. “Its focus on toll road infrastructure in the Philippines and Indonesia—with their large population base, strong economic growth and developing car cultures—positions the consortium to be a dynamic and significant force in infrastructure in Southeast Asia.”

San Miguel and Padma Funds LP., a Cayman Islands-based private equity firm that owns the Citra Group, control Citra Metro Manila Tollways Corp. and South Luzon Tollways Corp. The two toll road firms hold the concessions for the Metro Manila Skyway and South Luzon Expressway (SLEx), respectively. Revenue of both toll roads is expected to reach $266 million in 2012, up   12 percent year-on-year.

On its own, San Miguel also holds concessions in the $250-millon North Luzon East Expressway and the $390-million Tarlac-Pangasinan-La Union Expressway projects. Padma, through Citra, owns and operates 70 kilometers of toll roads in Jakarta and Surabaya, Indonesia’s second-largest city next to the capital, handling 600,000 vehicles a day.

San Miguel and Padma plan to put up a new holding firm for existing and future assets of both groups. The public listing would likely take place after the first quarter of 2013, Wahono said, adding that the company might sell $200 million worth of new shares initially. A follow-on offering two or three years down the line of roughly the same amount might also be done.

He said the company had the option of raising $700 million to $1 billion in one move by tapping the Singapore market, which has more liquidity. He said with interest rates in the region at record lows, “any instrument that pays out 7-8 percent a year will make investors used to fixed-income assets very happy.”

In the Philippines, the group hopes to develop the Skyway Stage 3 and 4, worth $590 million and $670 million, respectively; SLEx phase 4 worth $230 million and potentially the widening of the Southern Tagalog Arterial Road (Star), which the group intended to acquire before yearend. Skyway stage 3 will link the elevated highway to North Luzon Expressway (NLEx) while stage 4 will stretch from Buendia to Bulacan. SLEx phase 4 is a 57-kilometer road from Batangas to Lucena, Quezon.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , citra , Infrastructure , joint venture , roads , SMC

  • http://twitter.com/jayrvice j ludovice

    I hope SLEx extension to Lucena City will finally push through…traffic along Maharlika Highway particularly in San Pablo City and Alaminos is causing much delay….. Not good for business in the area

  • http://twitter.com/jayrvice j ludovice

    We have been waiting for the slex extension to lucena city….for so long

  • efriend

    Just build it.  Now na.

  • help_our_country

    Its a good news for all southerners.The travelling time from Lucena going to Manila & vice-versa will be shortened.Traffic congestion will lessen from Sto.Tomas to San Pablo City.

  • http://pulse.yahoo.com/_QSBNZB3TEKHJE5A74STZTTUHC4 ed0408

    It is important that the gov’t. should have at least 40% share of this companies who provide services (like Singapore) so that citizens can also benefit from the profits earned by this companies.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • What Went Before: Malacañang allies alleged involvement in pork scam
  • Timeline: Napoles tell-all
  • 12 senators on Napoles ‘pork’ list, says Lacson
  • Napoles surgery in Makati hospital successful
  • Save the queen? Aide takes fall for Enrile, Gigi Reyes
  • Sports

  • Mixers trim Aces; Painters repulse Bolts
  • Donaire junks Garcia as coach, taps father
  • ’Bye Ginebra: No heavy heart this time
  • UAAP board tackles new rules
  • Baguio climb to decide Le Tour de Filipinas
  • Lifestyle

  • The best flavors of summer in one bite, and more
  • Homemade yogurt, bread blended with pizza, even ramen
  • Visiting chefs from Denmark get creative with ‘ube,’ ‘ buko,’ ‘calamansi,’ mangoes
  • Salted baked potatoes
  • A first in a mall: Authentic Greek yogurt–made fresh in front of diners
  • Entertainment

  • Return of ‘Ibong Adarna’
  • Practical Phytos plans his future
  • In love … with acting
  • From prison to the peak of success
  • ‘Asedillo’ location thrives
  • Business

  • This time, BIR goes after florists
  • Philippine Airlines to stop shipment of shark fins
  • PH banks not ready for Asean integration
  • Stocks down on profit-taking
  • Banks allowed to use ‘cloud’
  • Technology

  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • PH seeks ‘clearer assurance’ from US
  • China and rivals sign naval pact to ease maritime tensions
  • What Went Before: Manila bus hostage crisis
  • Obama arrives in Tokyo, first stop of 4-nation tour
  • Believe it or not: Filipinos love US more than Yanks
  • Marketplace