Prime Asset Ventures Inc. (PAVI), the infrastructure business of richest Filipino Manuel B. Villar Jr. has signed implementing agreements for the P3.8 billion acquisition of the four-kilometer Muntinlupa Cavite Expressway (MCX) from Ayala Corporation.
In a statement, PAVI said the signing ceremony held at Brittany Hotel in Bonifacio Global City was attended by Villar as Vista Land Chairman and Ayala Corporation President and CEO Cezar Consing.
“This momentous event shows our resolve to provide our countrymen better services in the area of roads and toll ways. You’ll be surprised of the many wonderful things to come in Villar City,” Villar said.
Consing noted that, “Ayala developed MCX over a decade ago to connect Metro Manila to Imus, Dasmarinas and Bacoor in Cavite, which were experiencing rapid growth.”
“MCX succeeded in relieving traffic congestion and reducing the travel time between Metro Manila and Cavite. The sale of MCX represents another example of our recycling capital to benefit from opportunities in our core and emerging businesses,” Consing said.
The Department of Public Works and Highways had given its consent for the transfer of ownership from Ayala to the Villar Group on July 19, 2023.
The Villar Group continues to expand its investment portfolio from its core businesses on housing, retail, food, water, power, and utilities, to integrated resorts and entertainment.
“The sale of MCXPCI is aligned 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, and scaling up its emerging businesses in healthcare and logistics,” Ayala said earlier.
It added that, “the transaction supports Ayala’s target to raise $1 billion from value realization initiatives by 2023, which is executed through a combination of strategic partnerships and divestment of certain non-core assets.”
The proceeds of P3.8 billion will be used by Ayala to fund future investments and further strengthen the company’s balance sheet.
Of the P3.8 billion, Ayala will be paid P3.22 billion upon financial close while P581 million will be paid upon lapse of lockup period as prescribed under the MCX CA.
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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