MPIC buys large stake in CII B&R
MPIC buys large stake in CII B&R
The HCM City Infrastructure Investment Joint Stock Company (CII) sold 30 million shares of CII Bridge and Road (CCI B&R) to the Manila-based Metro Pacific Investments Corporation on January 14.
CII also sold CCI B&R converted bonds worth VND1.020 billion (US$47.88 million) to the Filipino partner on the same day, raising the total value of the deal to VND1.950 trillion ($91.54 million).
Le Quoc Binh, general director of CII, told local media that the sale was as per CII's restructuring plan, adding that it chose the Filipino partner because they both work in the same area and can take the advantage of the technology.
Binh added that his company will keep at least 51 per cent of the stake in CII B& R. Among CII's five subsidiaries, CII B&R is the most important one. It owns and operates seven construction projects in HCM City and plans to invest US$1.7 million in nine other construction projects.
Meanwhile, the media in the Philippines announced on the same day that after the transaction, MPIC has 45 per cent of the outstanding capital in CII B&R.
MPIC is the premier infrastructure development firm, and the country's largest toll road operator and water distributor. Along with an affiliate firm, it is the largest power distributor in the Philippines, and is listed on the Philippine Stock Exchange with a market capitalisation of nearly $3 billion.
Filipino website interaksyon.com says that MPIC has bought CII B&R shares at VND22,100($1.03) each.
On the same day, the shares of CII B&R (code LGC) were listed on the HCM City Stock Exchange at VND31,700 ($1.48) each.
