SMC gets majority stake in MRT-7

San Miguel Corp. has taken full ownership of the Metro Rail Transit 7 project for $100 million after gobbling up the stakes of Universal LRT Corp. Ltd. HK and businessman Salvador Zamora II.

In a disclosure to the Philippine Stock Exchange yesterday, SMC said its wholly-owned subsidiary San Miguel Holdings Corp. has completed the acquisition of the remaining 49 percent equity interest in Universal LRT Corp. BVI Ltd. (ULC BVI).

ULC BVI has the exclusive right to finance, design, construct, supply, complete and commission the MRT-7 project under a concession agreement signed with the Department of Transportation and Communications in 2008.

SMC likewise purchased 100 percent equity interest in ULCOM Co. Inc., the designated facility operator of the MRT-7 project.

With the completion of the buyout, the diversified conglomerate now owns 100 percent interest in both ULC BVI and ULCOM.

“The total consideration for the acquisition consists of payment for the shares as well as $3.8 million worth of shareholder advances made by ULC HK and Zamora, SMC said.

The P69.3- billion MRT7 project will traverse from North Avenue in Quezon City to San Jose del Monte in Bulacan.

It will connect with Metro Rail Transit Line 3 ( MRT- 3) which runs from North Avenue station in Quezon City until Taft station in Pasay City, with the provision to link to Light Transit Line 1 (LRT-1) covering Roosevelt station in Quezon City until Baclaran station in Pasay City.

The upcoming train line, expected to be completed over the next three to four years, will consist of 14 stations namely: Quezon North Avenue Joint Station, Quezon Memorial Circle, University Avenue, Tandang Sora, Don Antonio, Batasan, Manggahan, Doña Carmen, Regalado, Mindanao Avenue, Quirino, Sacred Heart, Tala, and San Jose del Monte.

SMC president and COO Ramon Ang earlier said the plan was to eventually bring up MRT-7’s capacity to cater to over 800,000 passengers per day from an initial daily capacity of 350,000 passengers.