Metro Pacific shifts interest to power generation assets
The Philippine Star
06/16/2006
With its interest waning in Manila North Tollways Corp. (MNTC), Metro Pacific Corp., the local flagship of Hong Kong-based investment and management company First Pacific Co. Ltd., is seriously considering acquiring power generation assets to be auctioned off by the government.
Metro Pacific president Jose Ma. Lim said the group is looking at a whole range of power projects including the 600-megawatt (MW) Calaca coal-fired power plant in Batangas.
The Calaca power plant is the first major generation asset on the government’s bidding line-up this year. It was first auctioned in June 2005 but the bidding was canceled when two of the three prequalified bidders backed out shortly before the deadline.
To further boost investors’ interest, the Power Sector Asset Liabilities Management Corp. (PSALM) announced early this month that it had attached a supply contract to the Calaca power plant.
Lim said the group considers the power generation business a lucrative venture as Metro Pacific seeks to build a stronger platform for growth.
Metro Pacific chairman Manuel Pangilinan, for his part, said while the group is still interested in buying out MNTC, it is on the look-out for other opportunities, particularly in high-growth areas to further build on its businesses.
"We can’t wait forever. There’s an option on our part to move on, maybe look at other opportunities because the discussions have been ongoing for more than a year. So I think it’s safe to say that no significant progress has been made. But there’s always room for negotiations," Pangilinan said.
At the same time, Pangilinan said he is interested in acquiring 100 percent of BusinessWorld, a business daily. His group currently owns 30 percent of BusinessWorld.
Metro Pacific approved a three-pronged reorganization plan that will involve the creation of a new debt-free investment holding company to continue the expansion of its real estate business, and to raise new capital for planned investments in infrastructure and consumer products businesses.
Under the reorganization plan, expected to be completed by September this year, an investment holding company to be known Metro Pacific Investments Corp. (MPIC) shall be formed to be owned 76 percent by the First Pacific Group of Hong Kong.
Pangilinan said the first stage of the plan involves a decrease in the authorized capital stock of Metro Pacific and a consequent reverse stock split. The consolidation ratio of new for old Metro Pacific shares will be determined such that the par value of the Metro Pacific shares will approximate its tangible net asset value per share post consolidation.
It also includes the sale of Metro Pacific’s entire shareholdings in Landco Pacific Corp. at fair value subject to the release of Landco shares which are currently pledged to certain creditors. The objective of this is to make Landco the initial core business of MPIC and receive new capital to expand its portfolio of operations. Landco needs P4.3 billion in the next three years to fund its expansion.
The second phase calls for MPIC to offer its shares for all the outstanding shares of Metro Pacific on a one-for-one basis. Simultaneous with this, MPIC will apply with the Philippine Stock Exchange for listing of its shares by way of introduction. Following the listing of MPIC shares, Metro Pacific shall cease to be traded on the bourse.
At the close of this stage, MPIC will own 87 percent of Landco and 100 percent of Metro Pacific which shall continue to exist as an unlisted corporate entity and own shipping firm Negros Navigation Co. and certain other assets.
Pangilinan said the third and final stage of the plan involves the implementation by MPIC of a rights issue to raise about P2.7 billion.
Metro Pacific swung back to profitability last year after four years of consecutive losses, on gains made by its property unit, extraordinary earnings and considerable progress in its debt reduction and corporate rehabilitation efforts. It reported a net profit of P194.2 million as against a restated net loss of P241.9 million in 2004.
06/16/2006
With its interest waning in Manila North Tollways Corp. (MNTC), Metro Pacific Corp., the local flagship of Hong Kong-based investment and management company First Pacific Co. Ltd., is seriously considering acquiring power generation assets to be auctioned off by the government.
Metro Pacific president Jose Ma. Lim said the group is looking at a whole range of power projects including the 600-megawatt (MW) Calaca coal-fired power plant in Batangas.
The Calaca power plant is the first major generation asset on the government’s bidding line-up this year. It was first auctioned in June 2005 but the bidding was canceled when two of the three prequalified bidders backed out shortly before the deadline.
To further boost investors’ interest, the Power Sector Asset Liabilities Management Corp. (PSALM) announced early this month that it had attached a supply contract to the Calaca power plant.
Lim said the group considers the power generation business a lucrative venture as Metro Pacific seeks to build a stronger platform for growth.
Metro Pacific chairman Manuel Pangilinan, for his part, said while the group is still interested in buying out MNTC, it is on the look-out for other opportunities, particularly in high-growth areas to further build on its businesses.
"We can’t wait forever. There’s an option on our part to move on, maybe look at other opportunities because the discussions have been ongoing for more than a year. So I think it’s safe to say that no significant progress has been made. But there’s always room for negotiations," Pangilinan said.
At the same time, Pangilinan said he is interested in acquiring 100 percent of BusinessWorld, a business daily. His group currently owns 30 percent of BusinessWorld.
Metro Pacific approved a three-pronged reorganization plan that will involve the creation of a new debt-free investment holding company to continue the expansion of its real estate business, and to raise new capital for planned investments in infrastructure and consumer products businesses.
Under the reorganization plan, expected to be completed by September this year, an investment holding company to be known Metro Pacific Investments Corp. (MPIC) shall be formed to be owned 76 percent by the First Pacific Group of Hong Kong.
Pangilinan said the first stage of the plan involves a decrease in the authorized capital stock of Metro Pacific and a consequent reverse stock split. The consolidation ratio of new for old Metro Pacific shares will be determined such that the par value of the Metro Pacific shares will approximate its tangible net asset value per share post consolidation.
It also includes the sale of Metro Pacific’s entire shareholdings in Landco Pacific Corp. at fair value subject to the release of Landco shares which are currently pledged to certain creditors. The objective of this is to make Landco the initial core business of MPIC and receive new capital to expand its portfolio of operations. Landco needs P4.3 billion in the next three years to fund its expansion.
The second phase calls for MPIC to offer its shares for all the outstanding shares of Metro Pacific on a one-for-one basis. Simultaneous with this, MPIC will apply with the Philippine Stock Exchange for listing of its shares by way of introduction. Following the listing of MPIC shares, Metro Pacific shall cease to be traded on the bourse.
At the close of this stage, MPIC will own 87 percent of Landco and 100 percent of Metro Pacific which shall continue to exist as an unlisted corporate entity and own shipping firm Negros Navigation Co. and certain other assets.
Pangilinan said the third and final stage of the plan involves the implementation by MPIC of a rights issue to raise about P2.7 billion.
Metro Pacific swung back to profitability last year after four years of consecutive losses, on gains made by its property unit, extraordinary earnings and considerable progress in its debt reduction and corporate rehabilitation efforts. It reported a net profit of P194.2 million as against a restated net loss of P241.9 million in 2004.
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