Saturday, November 24, 2012

San Miguel-Citra consortium plans fund-raising for Philippine, Indonesia tollway projects




The joint venture of San Miguel Corp (SMC) and the Citra Group plans to raise more money to finance a multibillion-dollar war chest for building new tollway projects in the Philippines and Indonesia.

In a briefing on Friday, Shadik Wahono, chairman of PT Citra Marga Nuphasala, told reporters that the consortium is considering an initial public offering (IPO) in the Philippines or a business trust listing in Singapore next year.

The SMC-Padma Funds LP consortium holds majority of shares in Citra Metro Manila Tollways Corp, South Luzon Tollway Corp and their respective operating and maintenance companies.  

Padma, which is managed by Cayman Island-based Parralax Capital Management, owns the Citra Group. Citra Manila is the concession holder and operator of the Skyway, while SLTC operates the South Luzon Expressway (SLEX).

Wahono said the company plans to raise $700 million-$1 billion to finance existing tollway projects and future acquisitions in the Philippines and Indonesia.

"The IPO plan is still in various stages. We are talking with some bankers," Wahono said, adding that it will undertake a road show in Hong Kong and Singapore to get more feedback from investors.

Wahono said the consortium may create a new corporate vehicle for the planned IPO in the Philippines or business trust listing in Singapore.

The company also has the option to list Atlantic Aurum Inc in the local bourse.  San Miguel Holdings Corp (SMHC) owns 46 percent of Atlantic, while Citra Group, the balance.

SMC-Padma's priority projects include the $950 million Skyway Stage 3, $670 million Skyway Stage 4, $230 million SLEX TR4 (from Sto. Tomas to Lucena), and $50 million extension and widening of the Southern Tagalog Arterial Road (STAR).

SMC, through its subsidiaries, is involved in the $250 million North Luzon East Expressway and the $390 million Tarlac-Pangasinan-La Union Expressway projects.

In Indonesia, the priorities are the Becaluya Road Project, the Inner Jakarta Toll Road Project and the South Sumatra Resources Road Project.

The SMC-Padma consortium also is in late stage discussions to acquire control of Star Infrastructure Development Corp, the concession holder of the 42-kilometer STAR in Batangas.

In 2011, combined revenue from these toll roads reached $237 million. Revenue for next year is expected to reach $266 million, or an increase of 12 percent.-Interaksyon (November 23, 2012 5:09PM)

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