GSIS raises stake in Metro Pacific to 12%

STATE pension fund Government Service Insurance System increased its stake in infrastructure conglomerate Metro Pacific Investments Corp. to nearly 12 percent.

GSIS said in a letter to MPIC it purchased 2.49 billion MPIC shares from the market from Aug. 23 to Sept. 4, 2023. The fund is now the beneficial owner of 3.43 billion MPIC shares, representing about 11.98 percent of the total outstanding common shares of the company.

GSIS purchased the MPIC shares when a consortium consisting of Metro Pacific Holdings Inc., GT Capital, MitPacific Infrastructure Holdings Inc. and MIG Holdings Inc. was conducting a P55-billion tender offer to acquire all shares held by minority investors.

COL Financial research head April Lynn Tan said that with the latest development, the consortium bidders would not attain its target to acquire 95 percent of MPIC. She said this also reduced the likelihood that the conglomerate would be able to push through with the delisting from the local bourse.

MPIC chairman and chief executive Manuel Pangilinan on Monday expressed hope the consortium would secure enough shares to qualify for delisting.

“The tender period will expire on Sept. 7, so let’s wait. We are hopeful that the amount of shares will translate to qualification for delisting,” Pangilinan said when asked about the update on the tender offer.

“But we have told the government that we will not stop there because we will be listing our subsidiaries to take over the privatization of MPIC. The first will be tollways that will be a significant listing,” Pangilinan said.

MPIC in August this year obtained shareholders’ approval on the planned voluntary delisting after 77.72 percent of the total outstanding common shares voted in favor of the proposal.

The voluntary delisting rules of the Philippine Stock Exchange provide that the common shares up for tender offer, together with the common shares owned by the bidders and the qualifying common shares of MPIC’s directors, should constitute at least 95 percent of the total outstanding common capital stock of MPIC.

MPIC reported that first-half attributable income reached P10.22 billion, up 7.6 percent from P9.5 billion a year ago led by gains from the acquisition of Landco Pacific Corp.

Six-month revenues grew 20.9 percent to P29.37 billion from P24.29 billion in the same period last year.

MPIC has stakes in Manila Electric Co., Maynilad Water Services Inc., Metro Pacific Health Corp., Metro Pacific Tollways Corp., Light Rail Manila Corp., Global Business Power, Metropac Movers Inc. and Landco Pacific.