Toll road operator Metro Pacific Tollways Corp. (MPTC) is making two major acquisitions that will further increase its stake in North Luzon Expressway (NLEX) Corp., its parent company said.
MPTC is the tollway infrastructure unit of Metro Pacific Investments Corp. (MPIC), one of the three key Philippines units of Hong Kong- based First Pacific Co.
First Pacific said in a disclosure to the Hong Kong Stock Exchange MPTC would buy a 55.42-percent stake in EGIS Investment Partners Philippines Inc. (EIPPI), the local unit of France- based Egis Group for P5.524 billion.
The acquisition will bring MPTC’s total ownership of EIPPI to 100 percent, increasing its interest in NLEX from 77.7 percent to 83.6 percent.
MPTC will also acquire a 34-percent interest in Easytrip Services Corp. (ESC) for P1.97 billion. This will raise MPTC’s total ownership in ESC to 100 percent.
The acquisition of EIPPI is expected to strengthen MPTC’s financial performance. With increased ownership in NLEX, MPTC anticipates higher revenue generation and improved operational efficiencies. The North Luzon Expressway is a critical infrastructure asset that connects key economic areas, making it essential for MPTC’s growth.
MPTC’s management is optimistic about future cash flow contributions from NLEX. As traffic demand continues to rise, the company expects to benefit from increased toll revenues.
Meanwhile, the acquisition of ESC will also enhance MPTC’s service offerings, particularly in electronic toll collection. The integration aims to improve customer experience and streamline operations. MPTC believes that a seamless toll collection system is vital for meeting the needs of road users.
The acquisitions align with MPTC’s long-term growth strategy focused on infrastructure investment and expansion.
The completion of these acquisitions is subject to regulatory approvals and the fulfillment of specific conditions outlined in the agreements.
MPTC aims to finalize the transactions promptly to take advantage of the growth opportunities presented by both NLEX and ESC.
MPTC in August acquired the government’s 2.61-percent stake in NLEX for P2. 5 billion,
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