Stockholders OK MNTC-TMC merger

Metro Pacific Investments Corp. (MPIC) unit Manila North Tollways Corp. (MNTC) has secured stockholders’ approval for its proposed merger with Tollways Management Corp. (TMC), as well as the change of name of the company to North Luzon Expressways Corp. or NLEX Corp.

“MNTC stockholders owning at least 2/3 of MNTC’s outstanding capital stock confirmed and ratified the proposed merger between MNTC and TMC, with MNTC as the surviving corporation,” MNTC said in a filing.

The approval was obtained during the annual general meeting of MNTC’s stockholders on Nov. 17.

Last month, MNTC’s board of directors approved the merger which company president and CEO Rodrigo Franco said earlier, is expected to be completed by March of next year.

Through the merger, he said the company would have streamlined processes and better ability to finance and undertake projects.

During the same meeting, stockholders owning at least 2/3 of the company’s outstanding capital stock also approved the proposed amendment to the MNTC-TMC merger whereby the option to redeem the MNTC preferred shares shall be exercisable at any time after one year from the effective merger date or such shorter period as may be determined by the board of directors.

Aside from shareholder approval, the merger would need the green light of regulators such as the Philippine Competition Commission and the Securities and Exchange Commission (SEC).

MNTC said the stockholders likewise approved the proposed change in the corporate name of the company from MNTC to North Luzon Expressways Corp. or, if unavailable, NLEX Corp., subject to the approval of the SEC, during the meeting.

MNTC is the concessionaire for both the NLEX and Subic-Clark-Tarlac Expressway.

It is also the designated company for the NLEX-South Luzon Expressway connector road project.

TMC meanwhile, is engaged in the operations and maintenance of tollways, its facilities, interchanges and related works, among others.