Manny Pangilinan optimistic of listing toll business in 2024

Metro Pacific Investments Corporation (MPIC) chair Manuel Pangilinan is optimistic of listing his tollways business this year, amid plans to merge the entity with the expressway business of San Miguel Corporation (SMC).

In an interview with reporters in Pasig City on Monday, Pangilinan said the listing on the local stock exchange could happen within 2024, citing the structure of the business which caters mostly to tollways.

“Kaya naman, because hindi naman masyadong complex ‘yung negosyong ito eh, so with the commitment of both parties, I don’t see why we cannot do it within the year,” he said.

(We can do it, because this business is not that complex so with the commitment of both parties, I don’t see why we cannot do it within the year.)

Metro Pacific Tollways Corporation (MPTC), a unit of MPIC, currently operates the North Luzon Expressway, the Subic-Clark-Tarlac Expressway, the Cavite-Laguna Expressway, the Manila-Cavite Expressway, the NLEX Connector, and the Cebu-Cordova Link Expressway.

Pangilinan noted, however, that the parties have yet to look at the regulatory approvals that may be needed in both the Philippines and Indonesia, where MPTC has operations.

“That assumes it includes our, at least our Indonesian assets, but that still needs to be discussed with them,” he said.

Should MPTC merge with the tollways business of SMC, led by Ramon Ang, Pangilinan said this would lead to a “significant” company in the Philippines with starting earnings before interest, taxes, depreciation, and amortization (EBITDA) of P50 billion.

“I think it’s good to have significant companies which are candidates for listing diba, so we need more companies to be listed. One got delisted recently, so we’d like to replace that with operating companies,” he said.

“This is a single-product company, easy to understand, relatively easy, EBITDA’s fairly high, higher margins. Once you build the tollways, all you need is maintenance capex and expansion capex if traffic grows which is usually the case,” he added.

MPTC’s parent firm, MPIC, delisted from the Philippine Stock Exchange (PSE) in October 2023.

Pangilinan last September announced plans to list the tollways business, to be followed by Maynilad Water Services Inc. in 2026. — BM, GMA Integrated News