MPIC increases stake in Indonesian infra firm

Infrastructure conglomerate Metro Pacific has deepened its involvement in Southeast Asia’s most populous market by gaining a majority stake in listed Indonesian firm PT Nusantara Infrastructure Tbk.

The most recent 4.99-percentage increase in stake in PT Nusantara, which brought the group’s economic interest to 53.26 percent, has triggered a mandatory tender offer. Metro Pacific has thus prepared to make an offer to acquire all other remaining shares in the Indonesian firm potentially valued at P5.29 billion.

In a disclosure to the Philippine Stock Exchange yesterday, Metro Pacific Investments Corp. (MPIC) announced the acquisition by PT Metro Pacific Tollways Indonesia (PT MPTI) of an additional 4.99-percent interest in PT Nusantara by way of a cross sale on the Indonesian Stock Exchange. This was purchased from the open market at a bloc price of around P597.33 million.

PT Nusantara’s infrastructure portfolio in Indonesia includes toll roads, ports, energy and water.

PT MPTI is a wholly-owned subsidiary of MPIC’s toll road unit Metro Pacific Tollways.

The minority shareholders of PT Nusantara collectively hold 44.21 percent of the outstanding capital stock. Some 2.53 percent of the remaining shares are held as treasury shares.

The tender offer price— still subject to approval of the Indonesian Financial Services Authority—is expected to be set at 211 Indonesian rupees (IDR) (about P0.79) per share.

Metro Pacific group intends to fund the additional acquisition and the tender offer using proceeds from bank loans.

“The transaction is expected to enhance profitability and strengthen the balance sheet of MPTC,” the disclosure said.