MPTC-SMC tollways merger seen to finalize this month

By Ashley Erika O. Jose, Reporter

THE MERGER between Metro Pacific Tollways Corp. (MPTC) and San Miguel Corp. (SMC) is expected to be finalized this month, according to MPTC President Rogelio L. Singson.

“The merger is actually going to happen sooner rather than later… Expect some announcement soon, within October,” Mr. Singson told reporters on the sidelines of the Management Association of the Philippines general membership meeting on Wednesday.

MPTC initially expected to finalize the planned merger by the first quarter of 2025. However, after the tollways arm of the Pangilinan group finalized its investment deal to acquire a 35% stake in the Trans-Java toll road network in Indonesia, the merger is now likely to happen sooner than expected, Mr. Singson noted.

Earlier this month, MPTC’s subsidiaries and Singapore’s GIC Pte. Ltd. finalized their investment cooperation to acquire a 35% stake in PT Jasamarga Transjawa Tol (JTT), a major toll road operator in Indonesia.

“Indonesia [assets] have to be part of it, and now that the transaction has been completed, the [size] of the merger would be 50:50,” Mr. Singson said.

MPTC has said that while SMC’s toll road assets are larger, MPTC’s Indonesian assets will balance the difference.

The merged company is still being planned to be listed on the Philippine Stock Exchange, Mr. Singson said, adding that MPTC’s initial public offering (IPO) plans would still have to wait.

Mr. Singson said that the merged entity will be listed on the Philippine Stock Exchange, and MPTC’s IPO plans will still have to wait.

“Well, that will have to wait whether we will list separately, or we will wait for a merger and be listed together,” he said.

For Chinabank Capital Corp. Managing Director Juan Paolo E. Colet, market participants are expected to “welcome” the merger as it could translate to significant operational efficiencies and improved financial performance for both entities.

“The scale and dominant position of the unified tollways company would make its IPO attractive to foreign and domestic investors,” Mr. Colet said in a Viber message.

Mr. Colet noted that despite the expected announcement this month, regulatory approvals may cause delays.

“There’s been some uncertainty as to the exact timing of the merger. Even if they announce a deal this year, it will have to go through regulatory approvals, so completing the transaction might take more time, perhaps until early next year,” he said.

Mr. Singson, who will be stepping down as president and CEO of MPTC this month, said the merger will need approval from the Philippine Competition Commission (PCC).

Mr. Singson will be succeeded by Arrey A. Perez, who recently resigned as president of Clark International Airport Corp.

MPTC is the tollway arm of Metro Pacific Investments Corp., which is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

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