A flyover is seen at the South Luzon Expressway in Manila in this 2010 file photo. San Miguel Corp. and the Citra group of Indonesia are poised to take over the 35.9-kilometer SLEx, which runs from Alabang to Sto. Tomas, Batangas. AFP PHOTO/NOEL CELIS
San Miguel Corp., in partnership with the Citra group of Indonesia, is wrapping up a deal to take over the 35.9-kilometer South Luzon Expressway, putting the tandem in charge of a vital artery in the metropolis.
Industry sources said SMC and Citra had reached an agreement in principle with the foreign owner of the SLEx concession to buy out the latter’s controlling stake in a deal worth over P20 billion.
SLEx, which runs from Alabang to Sto. Tomas, Batangas, also attracted the Metro Pacific group of Manuel V. Pangilinan and even the Ayala conglomerate.
But industry sources said the Malaysian group in control of the toll road opted to sell to the San Miguel-Citra group after the latter submitted a very attractive offer.
The prospective deal will give SMC-Citra control of the stretch of toll roads starting from the elevated 15-kilometer Skyway.
Earlier, SMC and Citra also reached an agreement to buy into the 42-kilometer Southern Tagalog Arterial Road (STAR) in Batangas.
Industry sources said the entry of SMC and Citra into SLEx was sounded off to employees Tuesday.
Under the agreement, SMC and Citra will buy into the offshore holding company that, in turn, owns the local company MTD Manila Expressway, which controls 80 percent of South Luzon Tollway Corp.
The remaining 20 percent is owned by the state-run Philippine National Construction Corp.
SLEx, whose concession is owned by Malaysian group MTD Berhad, has a daily passenger traffic of about 120,000 vehicles, while Skyway has a daily traffic of 180,000 cars.
STAR has a vehicular traffic of about 30,000 cars a day.
SMC-Citra group would likely use Atlantic Aurum Inc. to operate SLEx, industry sources said.
SMC earlier acquired an initial 46-percent interest in Atlantic, Citra’s corporate vehicle for Skyway. SMC has a continuing option to acquire up to 51 percent of the company.
It was earlier reported that SMC is keen on scaling up its interest in the toll road business, forming a three-way partnership with Citra and STAR to create an entity that will actively seek big-ticket infrastructure projects under the government’s public-private partnership (PPP) infrastructure-building framework. The end-goal is to pool their Philippine tollway interests to create a single vehicle with greater financial muscle.
SMC also leads the Tarlac-Pangasinan-La Union Toll Expressway (TPLEx) and the North Luzon East Expressway (NLEE).
TPLEX is an 88-kilometer expressway that will extend from La Paz, Tarlac (the end of the Subic-Clark-Tarlac Expressway) to Rosario, La Union. Once completed, the new road will cut by half the present travel time from Manila to Baguio. The 55.8-kilometer North Luzon East project, on the other hand, will be extended from Commonwealth Avenue in Quezon City to as far north as Tuguegarao City in Cagayan province.
SMC has interests in the power sector, mining and telecommunications, apart from its traditional business of food and beverage. It is likewise finalizing an agreement to invest in national flag carrier Philippine Airlines.