The Ayala Corporation and its AC Infrastructure arm sold their stake in the Muntinlupa-Cavite Expressway (MCX) to Prime Asset Ventures, Incorporated (PAVI). Prior to the sale, the Ayala Corporation was a stakeholder of the MCX Project Company, Inc. (MCXPCI).
MCX stretches a total of four kilometers and it connects the South Luzon Expressway (SLEX) to Daang Hari in Bacoor, Cavite. The toll road starts from the Susana Heights Interchange in Muntinlupa City, all the way to Daang Hari, Cavite. The expressway was reportedly completed at a grand total cost of P2.23-billion and has been operational since July 24, 2015, with a concession period of 30 years.
The sale was filed through the Securities and Exchange Commission (SEC) and it reveals that the Ayala Corporation’s stake in MCX was sold to PAVI for a grand total of P3.8-billion. The first payment from PAVI of P3.219-billion will be paid on the financial closing of the sale, while the remaining P581-million will be wired to the Ayalas once the corporation’s lockup period expires as prescribed in the MCX concession agreement.
For the time being, the sale of Ayala’s stake in MCXPCI to PAVI will still be subject to the consent of the Department of Public Works and Highways (DPWH), the MCX’s project grantor.
In order to raise $ 1-billion USD to refocus its assets from non-core assets, the Ayala Corporation is trimming down its portfolio for now in order to expand its real estate, banking, utilities, and invest more money into healthcare and logistics businesses.
PAVI is owned by the Villar Group, owned by the former politician, Manny Villar. The sale was posted yesterday, but will still be up for the DPWH’s approval.
So far, no other news about the sale is up, or whether the Villar Group has plans on developing the highway further.