Metro Pacific says capital raising unlikely in near future
METRO Pacific Investments Corp. (MPIC) on Thursday said there are no plans to raise fresh capital in the near term, as the infrastructure conglomerate looks to finance its expansions through internally-generated funds and borrowings.
In a disclosure to the stock exchange, MPIC said management has decided it is “not necessary” to conduct a capital raising exercise in the near future.
The infrastructure conglomerate issued the statement to address what it called as “increasing speculation in the market” on its “imminent capital raising.”
MPIC set its capital expenditure program at P79 billion this year, nearly double from last year’s P40.5 billion, mainly to fund construction of more toll roads and development of its Manila Electric Company-related assets.
“The continued expansion of MPIC is to be funded through a combination of internal resources and external borrowing,” the company added.
Firms usually raise capital as part of liability management exercise and to help finance its expansion plans.
MPIC reported a core net income of P12.1 billion last year, 17% higher than the P10.3 billion booked in 2015 driven by expansion across its toll road, power, and hospital businesses which is seen to continue expanding this year. Reported net income attributable to shareholders jumped 20% last year to P11.5 billion.
MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls.
Shares in MPIC closed P6.11 each yesterday, higher by 1.83%. —