Metro Pacific Tollways Corp. (MPTC) is exiting the Thai market, as it divests its entire shareholding in a major toll road facility in Bangkok for $149.25 million.
According to a regulatory filing, its indirect subsidiary FPM Tollway Ltd. has entered into share purchase agreements with several parties for the sale of FPM Tollway’s entire shareholding in AIF Toll Roads Holdings Co. Ltd.
AIF owns approximately 29.45 percent of the outstanding shares in Don Muang Tollways (DMT), the operator of a 21.9-kilometer elevated toll road in Bangkok.
“MPTC has decided to take advantage of the increased interest from third parties to acquire MPTC’s entire shareholdings in DMT. The transaction will allow MPTC to realize a gain on its investment in DMT and benefit from the increased liquidity,” the disclosure read.
Parties involved in the transaction are members of Wachiparong family, Ademas Co. Ltd., existing shareholders, and private Thai citizens.
MPTC is selling its shares for $9.428 apiece or a total of roughly $149.25 million, representing the sale of 15.83 million shares.
“The purchase price was determined after an arm’s length negotiation between FPM Tollway and the purchasers, after taking into account the AIF Toll Road’s 29.45 percent interest in DMT, the value of the assets and business of DMT and in comparison to a previous offer received by FPM Tollways and MPTC,” the disclosure read.
The proceeds from the sale will be used to fund MPTC’s other projects, particularly the C5 Link of the Manila-Cavite Expressway (Cavitex), the Cavite-Laguna Expressway (Calax) and the Cebu-Cordova Link Expressway (CCLEX), MPTC CFO Christopher Lizo said in a text message.
MPTC Vice President Francis Rojas noted that his group will still be on the lookout for other investments in Thailand.
“While we are selling our assets in Thailand, we are not closing our doors to future toll road opportunities in Thailand,” he said in a text message.
The transaction is expected to be completed “within a few days after the signing of the share purchase agreements.”
“After the sale of DMT, we are left with CII B&R in Vietnam and Nusantara in Indonesia,” Lizo said.
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