US firm raising stake in PH

Global investment firm KKR is seeking opportunities in the Philippine infrastructure space after teaming up with Tencent Holdings of China to invest $175 million in PLDT Inc.’s Voyager Innovations.

Businessman Manuel V. Pangilinan told reporters that KKR, which is based in the United States and has some $190 billion in assets under management, is looking at other companies under the First Pacific Group, a Hong-Kong based holding company with investments across Southeast Asia and Australia. In the Philippines, its portfolio includes PLDT, Metro Pacific Investments Corp. and Philex Mining.

Pangilinan, who serves as CEO of First Pacific, said KKR co-founder Henry Kravis was in Manila two weeks ago to discuss the Voyager deal as well as other potential investments in the country.

“I think they are interested, once this [Voyager deal] closes, to take a look at other opportunities,” Pangilinan said, citing Metro Pacific, whose assets span electricity and water distribution, toll roads, railways, hospital operations and logistics.

“They are keen on infra,” Pangilnan said.

Asked about whether KKR would invest in Metro Pacific itself, Pangilinan noted that this was “suggested” in their talks.

“Nothing is definite. I don’t want to suggest that we have agreed,” Pangilinan said.

Pangilinan said there also could be constraints if KKR were to invest directly in Metro Pacific. He said he was also open to a deal structure involving Metro Pacific’s subsidiaries and units, which include Manila Electric Co., Maynilad Water Services Inc. and the North Luzon Expressway.

He said more definite discussions could happen by 2019.

The interest comes as large investors like KKR and Tencent seek a wider footprint in Southeast Asia. The two groups had earlier taken positions in Indonesian ridesharing giant Go-Jek, which is also seeking expansion in the region. Last year, Chinese billionaire Jack Ma’s Ant Financial, a rival of Tencent, invested in Filipino technology firm Globe Fintech Innovations Inc.

The investment by Tencent and KKR in Voyager was the biggest of its kind in the country. Pangilinan said the infusion of fresh capital, which might eventually go up to $225 million as other investors come onboard, would help Voyager accelerate the development of its fintech platforms, the most recognizable of which is the PayMaya mobile wallet. —MIGUEL R. CAMUS