{"id":330464,"date":"2024-11-18T15:33:07","date_gmt":"2024-11-18T07:33:07","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330464"},"modified":"2024-11-18T15:33:09","modified_gmt":"2024-11-18T07:33:09","slug":"trade-the-news-mptc-targets-50-50-split-in-tollway-merger-with-smc","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-mptc-targets-50-50-split-in-tollway-merger-with-smc\/","title":{"rendered":"Trade the News: MPTC targets 50-50 split in tollway merger with SMC"},"content":{"rendered":"\n
Potential Impact of this News<\/strong><\/td>POSITIVE on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>San Miguel Corp.<\/td><\/tr>
Stock Code<\/strong><\/td>SMC<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 102.60<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

METRO PACIFIC Tollways Corp. (MPTC) is aiming for a 50-50 division in its planned merger with San Miguel Corp. (SMC), a company official said.<\/p>\n\n\n\n

\u201cFor us, the 50-50 split is a very ideal scenario\u2026 It\u2019s a balancing act. Our preference from our side is 50-50,\u201d MPTC Senior Executive Arrey A. Perez told reporters on Wednesday.<\/p>\n\n\n\n

He said the company plans to leverage its international assets, with reports suggesting a 90-10 division favoring Ang-led SMC in the expected tollway merger.<\/p>\n\n\n\n

\u201cWhatever it takes to make that happen \u2014 the 50-50 \u2014 if we\u2019re going to include the international assets, we will include. For now, our mandate is to have a 50-50 arrangement,\u201d Mr. Perez said.<\/p>\n\n\n\n

The merger is unlikely to happen within the year, he also said.<\/p>\n\n\n\n

\u201cThese things take time. These are huge assets. When you do a merger, you have to set your house in order.\u201d<\/p>\n\n\n\n

Currently, MPTC is studying the valuation of the companies, Mr. Perez said, adding that the company is not in a hurry to conclude the planned merger.<\/p>\n\n\n\n

\u201cAt the end of the day, it\u2019s all about arriving at a fair valuation of their tollway portfolios to justify their respective stakes in the merged entity,\u201d Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message on Thursday.<\/p>\n\n\n\n

\u201cA 90-10 split favoring SMC over MPTC would feel more like a takeover than a merger. In such a structure, SMC would gain overwhelming control, leaving MPTC with limited influence on major decisions, especially given that SMC\u2019s extensive tollway assets significantly outweigh those of MPTC,\u201d Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.<\/p>\n\n\n\n

Mr. Arce said in a 50-50 split scenario, balanced control would be retained and would allow both companies to leverage their strengths equally and allow both operations to benefit significantly through their strategic alignment.<\/p>\n\n\n\n

He said a 50-50 merger is also expected to boost investor confidence as it would be seen as a stronger alliance by market investors.<\/p>\n\n\n\n

\u201cThis could lead to a more stable post-merger stock performance as shareholders gain confidence in a collaborative, rather than contentious, business integration,\u201d Mr. Arce said.<\/p>\n\n\n\n

However, Mr. Arce said that a 50-50 ownership structure between the two companies might be difficult to achieve, as they operate differently, which could lead to a decision deadlock.<\/p>\n\n\n\n

\u201cIn a 50-50, decision-making could be challenging if both parties disagree on strategic directions. Without a dominant party, gridlocks in decision-making could delay critical projects, especially in an industry where timely infrastructure projects are crucial,\u201d Mr. Arce said.<\/p>\n\n\n\n

In October, MPTC and its units together with Singapore\u2019s GIC Pte. Ltd., a global institutional investor, finalized their investment cooperation valued at $1 billion for the acquisition of a 35% stake in PT Jasamarga Transjawa Tol, a major toll road operator in Indonesia.<\/p>\n\n\n\n

MPTC is the tollway arm of Metro Pacific Investments Corp., which is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.<\/p>\n\n\n\n

(News Source: Business World<\/a>)<\/em><\/p>\n\n\n\n

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This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Take advantage of the price opportunity that might arise when the news hits. Trade the news!<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1371],"tags":[],"class_list":["post-330464","post","type-post","status-publish","format-standard","hentry","category-trade-the-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=330464"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330464\/revisions"}],"predecessor-version":[{"id":330466,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330464\/revisions\/330466"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=330464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=330464"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=330464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}