MPIC unit buys 45% stake in Vietnam tollroad firm
INFRASTRUCTURE holding firm Metro Pacific Investments Corp. (MPIC) has debuted in Vietnam’s infrastructure space with the completion of a deal to acquire 45 percent of Ho Chi Minh city-based developer CII Bridges and Roads Investment Joint Stock Co. (CII B&R).
In a disclosure to the Philippine Stock Exchange yesterday, MPIC said its tollroad unit Metro Pacific Tollways Corp. (MPTC) now held a significant minority equity interest in CII B&R by buying a mix of equity and debt instruments.
MPTC bought secondary shares from CII B&R’s majority stockholder, Ho Chi Minh City Infrastructure Investment Joint Stock Co. (CII), and also subscribed to Vietnamese dong-denominated bonds issued by CII, which are exchangeable into secondary shares in CII B&R.
It was earlier announced that MPTC was investing 1.95 trillion Vietnamese dong ($90.6 million) in the form of 30 million CII B&R shares alongside bonds that are convertible into 56.67 million shares of the company.
The deal marks a new partnership with CII, one of the biggest private infrastructure development companies in Vietnam with exposure in toll roads, water, real estate and engineering and construction.
CII B&R is a tollroad company located in Ho Chi Minh City in Vietnam with eight toll road and bridge projects covering 123 kilometers. These tollroads have a combined daily vehicular traffic of 46,000 vehicles.
The five operating projects are the New Rach Chiec Bridge project, the Phan Rang–Thap Cham Bypass (Phase 1) build-operate-transfer (BOT) project, the DT741 road project, the Sai Gon 2 Bridge build-transfer project and the Rach Mieu Bridge (Phase 1) BOT project.
Two projects under construction are the Ha Noi Highway Expansion BOT project and the expansion of National Highway 1A B.O.T. project.
“With CII B&R’s experience in the Vietnam toll road industry and its strength in identifying and developing new projects, MPTC believes that CII B&R is the right partner to expand its operations in Vietnam,” the disclosure said.