MPTC postpones IPO to 2025 amid merger talks with San Miguel Corp.

  • Stock Market News
MPTC postpones IPO to 2025 amid merger talks with San Miguel Corp.
Credit: © Reuters.

PHILIPPINES - Metro Pacific Tollways Corp. (MPTC) has announced the deferral of its initial public offering (IPO) to 2025 as it engages in merger discussions with San Miguel Corporation's (SMC) toll road division. This strategic move follows the recent delisting of MPTC's parent company, Metro Pacific Investments (OTC: MPCIY ) Corp. (MPIC), from the Philippine Stock Exchange after a P28.4-billion tender offer to buy out minority shareholders.

MPTC, which operates major expressways like NLEX and SCTEX, had initially planned a Q3 IPO but has shifted its focus towards potential consolidation with SMC's expressway assets, which include TPLEX and STAR Tollway. The merger talks come on the heels of a P72 billion collaboration agreement signed in August 2023 to develop the Cavite-Batangas Expressway and another route south of Manila. These projects are anticipated to be pivotal for the future joint venture's listing on the stock exchange.

The decision to postpone the IPO was announced today by MPTC President Rogelio Singson, who cited the need for a comprehensive financial review and third-party assessments that are expected to take approximately two years. This reassessment is necessary to ensure the financial stability and strategic alignment of the merged enterprise before going public.

The collaboration between MPTC and SMC has already seen Ramon Ang, President of SMC, making a personal investment in MPIC and joining its board. This has further fueled discussions about the integration of the two giants' toll operations into a singular, more robust entity.

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