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Ayala Corp has agreed to sell all its stake in MCX Project Company Inc to the Villar group’s Prime Asset Ventures
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The transaction is worth P3.8 billion
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MCXPCI will hold the concession agreement for the Muntinlupa-Cavite Expressway project
Ayala Corporation has signed an investment agreement for the sale of MCX Project Company Inc. (MCXPCI) to the Villar group’s Prime Asset Ventures Inc. (PAVI) for P3.8 billion.
MCXPCI is a special purpose corporation that will hold the concession assets, rights, and obligations under the concession agreement for the Muntinlupa-Cavite Expressway (MCX) Project, AC said in a regulatory disclosure.
PAVI will make the P3.8 billion payment to AC in two tranches – P3.219 billion at the financial close and P581 million when AC’s lockup period lapses, as prescribed under the MCX concession agreement.
The spinoff of the MCX project from AC to MCXPCI and the sale of ownership stake from AC to PAVI are subject to consent of the Department of Public Works and Highways, the project grantor.
AC said the sale of MCXPCI is aligned with its strategic priority of realizing value from certain non-core assets and sharpening its focus on the continued expansion of its core businesses in real estate, banking, telecommunications, and power, as well as scaling up its emerging businesses in healthcare and logistics.
In addition, the transaction supports AC’s target to raise US$1 billion from value realization initiatives by 2023, executed through a combination of strategic partnerships and divestment of certain non-core assets, it said. The proceeds will be used to fund future investments and further strengthen the company’s balance sheet.
AC entered into the MCX Project concession agreement with DPWH in 2012. The concession assets and obligations under the agreement are embedded in AC, which is in the process of being transferred to MCXPCI after receiving DPWH’s consent to dispose of the asset.
In its letter dated March 10, 2022, DPWH consented to the transfer of the concession assets and obligations under the MCX concession agreement from AC to MCXPCI.
The P2.01-billion MCX, formerly the Daang Hari-South Luzon Expressway (SLEX) connector road, is a four-kilometer, four-lane toll road that connects Bacoor, Cavite to SLEX. It became operational in 2015.
READ: MCX expressway use free for a month
PAVI is the investment and holdings company of the Villar Group that holds major investments in subsidiaries operating in a variety of industries, including power and water utilities, information technology and telecommunications.
