DMCI waives right to more shares in toll road project

ABS-CBN News

Posted at Sep 04 2009 02:56 PM | Updated as of Sep 04 2009 11:57 PM

MANILA - Publicly listed DMCI Holdings Inc. (DMCI) has allowed the investment of diversified conglomerate San Miguel Corp. (SMC) in a local consortium tasked to build a multi-million-dollar toll road project.

In a disclosure to the local bourse on Friday, the Consunji-led firm said it has waived its pre-emptive rights to buy more shares in Private Infrastructure Development Corp. (PIDC), paving the way for SMC to take a substantial stake in the toll road consortium.

"The Board approved the Corporation (DMCI) to sign the waiver of pre-emptive rights in connection with the acquisition by SMC by and through its nominated company, Rapid Thoroughfares Inc., of the 1.58 million common shares of PIDC," DMCI said.

PIDC is a consortium of construction companies tasked to build the $312.5-million Tarlac-Pangasinan-La Union Expressway project. Last week, SMC has signed a subscription agreement for a 35% stake in the toll road consortium through its subsidiary, Rapid Thoroughfares Inc.

Rapid Thoroughfares has the option to raise its equity interest to 51% of PIDC.

DMCI waived its pre-emptive rights after its board approved the subscription of 1.45 million common shares in PIDC out of the consortium's increase in authorized capital stock of P3.5 million.

The company, which has interests in construction, real estate, coal, water utilities, power, and nickel, is looking forward to doubling its profits this year to P4 billion.