Filed Under: Infrastructure
MANILA, Philippines — Diversifying San Miguel Corp. and local construction giant DM Consunji Inc. have completed a joint takeover of a controlling 67 percent stake in the private sector consortium undertaking the Tarlac-Pangasinan-La Union Expressway build-operate-transfer project.
In separate disclosures to the Philippine Stock Exchange on Monday, San Miguel and DMCI announced the completion of their respective subscription to the bulk of the P3.5 billion capital increase for Private Infra Development Corp. (PIDC), which owns the BOT contract for the toll road project.
SMC, through infrastructure subsidiary Rapid Thoroughfares Inc. (RTI), acquired a 35 percent stake in PIDC. It was earlier announced that the subscription by RTI would cost about P1.57 billion equivalent to about 1.57 million common shares.
DMCI, on the other hand, announced it had subscribed to 1.5 million common shares, representing a 32.22 percent additional interest in PIDC.
As each share has a par value of P1,000 each, this subscription implied a capital infusion of about P1.5 billion.
SMC and DMCI thus accounted for P3.07 billion or 87.7 percent of this capital build-up program for PDIC. This capital hike represented about a quarter of the P15-billion estimated project cost for the tollway.
The 88-kilometer expressway project will extend from La Paz, Tarlac—at the end of the Subic-Clark-Tarlac Expressway (SCTEx)—to Rosario, La Union. The three-phase project, which is being undertaken through a build-operate-transfer contract with the Department of Public Works and Highways, is expected to be completed by 2013. The first two sections are expected to be finished by May 2010 and January 2011, respectively.
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