SMC unit takes full control of MRT-7 project

Conglomerate San Miguel Corp. has obtained full control of the P63-billion Metro Railway Transit (MRT) 7 project by buying out the 49-percent stake held by a group led by businessman Salvador Zamora II.

Through its wholly owned subsidiary San Miguel Holdings Corp., SMC struck a deal to purchase the additional holdings in Universal LRT Corp. BVI Ltd. for $100 million, the conglomerate told the Philippine Stock Exchange Tuesday.

As part of the deal, SMC also bought 100 percent interest in ULCOM Co. Inc., the designated facility operator of the MRT7 project.

The $100-million consideration for the deal consisted of payment for Zamora’s shares as well as the outstanding shareholder advances amounting to $3.8 million.

Universal LRT holds the exclusive right, obligation and privilege to finance, design, construct, supply, complete and commission the MRT7 project, a planned 22-kilometer-long elevated railway starting from San Jose del Monte in Bulacan and ending in North Avenue in Quezon City.

The concession agreement was obtained by Universal LRT from the government, through the Department of Transportation and Communication, in 2008.

SMC first bought into the MRT project by buying an initial 51 percent interest in Universal LRT in 2010.