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MPIC expects to finalize Indonesian toll road deal by July

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METRO PACIFIC Investments Corp. (MPIC) said it expects to finalize a deal with the Indonesian government for its toll road bid by July.

“Hopefully by July, it will be closed, we will sign the definitive agreement, and then it will be part of the merger (with San Miguel Corp. [SMC]), and then the planned merger will move forward,”  MPIC Chairman, President, and Chief Executive Officer Manuel V. Pangilinan told reporters on Tuesday.

“The last major piece is the closing of the Trans-Java toll road, this is big. After this closing, our deal with San Miguel will move forward,” he added.

In May, Mr. Pangilinan said the Indonesian assets of its toll road arm Metro Pacific Tollways Corp. (MPTC) will be included in the planned joint venture (JV) with the Ang-led SMC.

The Trans-Java toll road in Indonesia is being bid on by Jasamarga Transjawa Tol, a state-owned enterprise and the largest toll road operator in Indonesia.

Jasamarga manages the 676-kilometer section of the Trans-Java toll, serving between 700,000 and 800,000 vehicles daily.

In 2023, MPTC said that it expected to invest about $600 million to secure its bid for a portion of the Trans-Java toll road. The company, along with Singapore’s GIC, jointly bid for the toll project.

“It is a big, big tollway. So, from the valuation standpoint. It is important for us because it is valuable because the deal with San Miguel is 50-50,” Mr. Pangilinan said.

SMC and MPIC intend to establish a JV company for their tollway units.  The planned JV is said to have a starting EBITDA (earnings before interest, taxes, depreciation, and amortization) of around P50 billion.

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

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