MPIC Completes PhP6.12B Equity Placement
Manila—(PHStocks)—Metro Pacific Investments Corporation (MPIC, PSE: MPI) has placed 1.33 billion, PhP4.60 each, in new MPIC shares to raise funds for investments in infrastructure in the Philippines. The placement price is at a discount of 2.86% to MPIC’s 30-day volume weighted average share price as of Tuesday, January 22, 2013.
The placement, managed by CLSA Limited and UBS AG, was conducted overnight and garnered strong interest from institutional investors in Asia especially within the Philippines, as well as Europe and the U.S.
MPIC’s major shareholder, Metro Pacific Holdings Inc. (MPHI) did not subscribe to the placement. Consequently MPHI’s economic interest in MPIC will be reduced from 58.97% to 55.95%.
MPIC, the leading infrastructure investment management and holding company in the Philippines, will invest the proceeds of the share placement primarily in its water, roads and hospitals businesses as well as in supporting bids for new business areas such as light rail and airports.
Jose Ma. K. Lim, President and Chief Executive Officer of MPIC, says, “We are continuing to work toward our proposed NLEX-SLEX Connector Project on which in principle agreement was reached with DOTC and we will be bidding on further road projects in the south of Metro Manila. In addition we have in front of us some significant new investments in water businesses outside the Maynilad concession as well as rapidly increasing capex for sewage coverage in Maynilad itself. This fundraising will help support these expansions.”
“We are beginning to see some momentum in the Government’s PPP initiative,” says MPIC Chairman Manuel V. Pangilinan, referring to public-private partnerships (PPP) aimed at employing private funds to build and/or improve public infrastructure such as roads, railways and airports. “Bidding processes including prequalification requirements are already running for LRT1 and Cebu-Mactan airport and we believe the Government will soon commence bidding on the CALA Expressway. MPIC is now well placed to participate in these projects and other infrastructure expansion,” he adds.