The Villar Group is entering the tollway business as it has acquired the 100 percent stake of MCX Project Company, Inc. (MCXPCI). This means that the 4-kilometer Muntinlupa-Cavite Expressway (MCX) will operate under the Villar Group, specifically the Prime Asset Ventures Inc. (PAVI).
Muntinlupa-Cavite Expressway is now under Villar Group
PAVI, part of the Villar Group, acquired 100 percent of the MCXPCI from Ayala Corporation (AC) for Php 3.8 billion as stated in the Securities and Exchange Commission (SEC) filing.
AC signed an investment agreement with Villar Group’s PAVI for the full ownership stake in MCXPCI. MCXPCI is the special purpose corporation that will hold the Concession Assets, Rights and Obligations under the Concession Agreement for the MCX Project.
AC said in a statement that the sale of MCXPCI is in line with Ayala’s “strategic priority to realize value from certain non-core assets and sharpen its focus on the continued expansion of its core businesses in real estate, banking, telecommunications, and power.”
Ayala-led AC added that the transaction will support the company’s target to raise USD 1 billion (around Php 52.4 billion) by 2023 to fund future investments and “further strengthen the company’s balance sheet.”
The MCX first opened to the public last July 2015
AC is in the process of transferring the concession assets and obligations to MCXPCI following the receipt of consent from the Department of Public Works and Highways (DPWH). The DPWH granted the consent to the transfer of the concession assets and obligations under the MCX Project Concession Agreement (MCX CA) from AC to MCXPCI.
PAVI will pay the Php 3.8 billion in two tranches. AC will be paid Php 3.22 billion upon financial close, and Php 581 million will be paid upon the lapse of AC’s lockup period as prescribed under the MCX CA.
The MCX is a 4-kilometer road that connects Bacoor, Cavite to the South Luzon Expressway (SLEX). It was first opened in July 2015, and it is also known as the Daang Hari-SLEX Road.
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