MPIC sells 19.2% stake in LRT-1 to Sumitomo

Metro Pacific Investments Corp., an infrastructure conglomerate, has sold its 19.2 percent economic interest in Light Rail Transit 1 to Sumitomo Corp., one of Japan’s largest trading general trading companies.

MPIC said Sumitomo has acquired a 34.9 percent stake in MPIC’s subsidiary that holds a 55 percent stake in Light Rail Manila Corp., operator of LRT-1.

Company chairman Manuel V. Pangilinan said Sumitomo’s entry bodes well for the conglomerate given the Japanese firm’s expertise in rail projects.

“MPIC welcomes Sumitomo as a strategic stakeholder in the LRT-1 project along with its current partners AC Infrastructure Holdings Corp. and Macquarie Investments Holdings (Philippines) Ltd.,” he said.

“This investment by Sumitomo is a welcome illustration in their belief in the future of this project. We are all eager to resume operations of LRT1 when the current extended quarantine is released,” Pangilinan added.

For MPIC, it would also provide additional liquidity but the company’s chief financial officer David Nicol said the deal was more like a strategic partnership.

LRMC has a 32-year concession from Sept. 12, 2015 to operate, maintain and extend the 20.7 km LRT-1, a vital light rail infrastructure asset in the heart of Metro Manila.

LRT-1, currently with 20 stations, has started works on the extension of the system to Cavite.

Sumitomo is excited to partner with MPIC, to invest in the LRT1 project and contribute to the development of rail infrastructure in the Philippines.

“Sumitomo is keen to share our 100 years-worth of global investment and operational experience. We are confident that our investment and expertise will provide the support the expanding Manila public transit infrastructure needs to grow, and to bring local communities even closer through the Cavite extension. We thank MPIC for this unique opportunity and we look forward to many years of future investment in the Philippines,” Sumitomo said.