The tollroad unit of infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) has taken full control of Indonesian toll road developer and operator PT Margautama Nusantara (MUN) following a P3.44-billion deal to buy out minority shareholders.
Metro Pacific Tollways Corp. (MPTC) has sealed its acquisition of an additional
24.98-percent interest in MUN, a private company that currently manages four strategic toll roads in Indonesia, for around $67 million or P3.44 billion.
In a disclosure to the Philippine Stock Exchange on Tuesday, MPTC, through its Singaporean subsidiary Metro Pacific Tollways Asia Corp. Pte. Ltd. (MPT Asia), acquired 100 percent of CIIF Infrastructure Holdings Sdn Bhd (CIIF) and CAIF III Infrastructure Holdings Sdn Bhd (CAIF III).
CIIF and CAIF III, both holding firms incorporated in Malaysia, hold a 20-percent and 4.98-percent equity interest in MUN, respectively.
This indirect acquisition through CIIF and CAIF III will add to the existing indirect equity interest of MPTC in MUN through its wholly owned Indonesian subsidiary PT Metro Pacific Tollways Indonesia, which controls 75.89 percent of PT Nusantara Infrastructure Tbk, which in turn holds around 74.98 percent equity interest in MUN.
“The transaction is expected to enhance profitability and strengthen the balance sheet of MPTC,” MPIC said in its disclosure to the Philippine Stock Exchange.
Outside the Philippines, MPTC has tollroad interests in Indonesia and Thailand.
In the first semester, MPTC recorded a core net income of P2.4 billion, marking a 6-percent increase year-on-year as higher traffic on domestic roads made up for lower traffic on overseas tollroads, and higher financing cost from borrowings used to partially finance increased investment in PT Nusantara in 2018.
Overall, MPTC’s system-wide vehicle entries, including domestic and regional road networks, averaged 923,569 a day in the first half of 2019 versus 920,126 during the same period last year.
Average daily vehicle entries for the toll investments outside the Philippines declined by 8 percent year-on-year to 404,891 in the first half.
Lower traffic volumes in DMT (Bangkok) and PT Nusantara (Indonesia) were attributed to construction and road integration within their concession areas.