If its planned voluntary delisting pushes through, Metro Pacific Investments Corporation (MPIC) may undertake initial public offerings of its units to unlock the value of its core businesses. In a press briefing, MPIC Chairman, President and CEO Manuel V. Pangilinan said “the Company’s Board of Directors and senior management echo the Bidders’ observation that the intrinsic value of MPIC’s core investments in infrastructure in the Philippines has not been fully reflected in MPIC’s share price for some time.” MPIC Chairman, President and CEO Manuel V. Pangilinan
A consortium consisting of Metro Pacific Holdings, Inc., GT Capital Holdings, Inc., Mit-Pacific Infrastructure Holdings, Inc., and Pangilinan’s own MIG Holdings Incorporated have made a tender offer for 36 percent of MPIC’s shares held by the public at P4.63 per share. While minority shareholder complain that the price is too low, the Bidders and MPIC officers argue that it represents a 22 percent premium over the one-year Volume Weighted Average Price of MPIC’s common shares and that the market is not inclined to buy it up to the estimated value which ranges from P6.00 to P9.00 per share. MPIC Chief Finance, Risk and Sustainability Officer Chaye A. Cabal–Revilla noted that the current market price of MPIC is lower than the tender offer and even their buyback price for the last three years have been much lower. MPIC Chief Finance, Risk and Sustainability Officer Chaye A. Cabal–Revilla

“The tender offer and successful delisting will allow MPIC’s minority shareholders to realize a significant premium over the historical share prices of MPIC,” said Pangilinan. Meanwhile, Cabal-Revilla said MPIC is projecting capital expenditures of P140 billion for the entire group after reporting a 38 percent growth in consolidated core net income to P4.3 billion in the first quarter of 2023 from P3.1 billion in the same period last year. She said the biggest capex allocation of P64 billion will be for Metro Pacific Water, P27 billion for Metro Pacific Tollways Corporation, and P26 billion for Maynilad Water Services Inc. The balance will be used by other MPIC units including Metro Pacific Agro Ventures Inc. which has already used P5.32 billion to acquire 34.76 percent of Axelum Resources Corporation last February. Cabal-Revilla said “Improved financial and operating results at MPIC’s holdings delivered a 30 percent increase in contribution from operations, mainly driven by the strong performance of the power generation business and higher billed volumes from the water concession.” Power accounted for P4.2 billion or 75 percent of net operating income; Toll Roads contributed P1.3 billion or 23 percent; Water contributed P1.1 billion or 19 percent; and the other businesses, mainly Light Rail, Healthcare, Agribusiness, Real Estate, and Fuel Storage, incurred a net loss of P967 million. Net interest costs declined three percent due to the strategic rerating and refinancing of expensive debt facilities over the past two years, notwithstanding a rising interest rate environment. Reported attributable net income declined 12 percent to P5.0 billion compared with P5.7 billion last year, which had the benefit of gains from the acquisition of Landco. “Our strong performance for the first quarter reflects significant volume increases for our power, toll roads, water and healthcare businesses, bolstered by favorable tariff adjustments and savings resulting from operational efficiencies,” said Pangilinan. He added that, “We are also realizing the fruits of strategic investments in the power generation business, and we expect this to continue to be a driver of growth in the future.”