Metro Pacific pushes back delisting, entry of Japan’s Mitsui

June 1, 2023 - 3:30 PM
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Logo of Metro Pacific Investments. (Philstar.com/File)

Philippine infrastructure firm Metro Pacific Investments Corp MPI.PS is delaying its stock exchange delisting, the firm said on Thursday, holding up a planned entry of Mitsui & Co Ltd 8031.T and a Japan government-backed fund.

In a disclosure, Metro Pacific said it will defer its plan to seek shareholders’ approval for delisting pending the completion of a fairness opinion and valuation report.

Securing shareholders’ approval for delisting at an annual meeting on June 6 would have kicked off a 48.68 billion pesos ($880.68 million) offer to buy out minority stockholders. Mitsui and JOIN, a government-backed fund that supports Japanese firms’ overseas infrastructure projects, will acquire 20% of Metro Pacific valued at $481 million.

Metro Pacific, which has interests in power, water, hospitals and toll roads, said it will request for a special stockholders meeting at a later date.

Metro Pacific has faced stiff opposition over what minority shareholders deem as low tender offer price at 4.63 pesos ($0.08) per share, according to a banking source with knowledge of the deal.

“The parties will discuss and evaluate if they still wish to proceed with the tender offer and at what price,” the source said.

Metro Pacific, a unit of Indonesian tycoon Anthoni Salim’s First Pacific Co Ltd, has long been a target for strategic investment and privatisation owing to its cheap valuation on the Philippine bourse.

($1 = 55.27 Philippine pesos)

—Reporting by Neil Jerome Morales; Editing by Kanupriya Kapoor