Japan's Mitsui, First Pacific raise offer for Philippines' Metro Pacific (updated)

First Pacific

04/07/2023 03:46

(Recasts, adds details and investment banker's comments in
paragraphs 5 and 6)
    By Neil Jerome Morales and Jaskiran Singh
       MANILA, July 4 (Reuters) - Japan's Mitsui  8031.T , Hong
Kong's First Pacific  0142.HK  and their partners on Tuesday
lifted an offer to buy out minority shareholders in Philippine
infrastructure firm Metro Pacific  MPI.PS  to as much as 54.8
billion pesos ($990.7 million).
    In separate disclosures, the buyers offered 5.20 pesos per
share, up 12% from a previous offer that resulted in backlash
over what minority shareholders deemed a low valuation for the
firm with interests in power, water, hospitals and toll roads.
    The latest offer price represents a 22% premium to Metro
Pacific's last close on April 26, before the offer was first
disclosed, and is 37% higher versus a one-year weighted average
price.
    The deal would see the acquisition of up to 36.6% of Metro
Pacific's shares owned by minority public stockholders by a
consortium that includes Mitsui, Japanese government-backed fund
JOIN, First Pacific, and their Filipino partners.
    "It signals an earnest desire by the offerors to listen to
the market's clamour for a fair price," Juan Paolo Colet,
managing director of investment bank China Bank Capital in
Manila said of the increased price.
    Many minority shareholders will seriously consider selling
shares amid a prospect of prospect of holding a perennially
undervalued stock, Colet added.
    The deal further hinges on stockholders approving in August
the delisting of Metro Pacific's common shares from the
Philippine bourse.
    Metro Pacific has long been considered a target for
strategic investment and privatisation owing to its cheap
valuation. 
    Indonesian tycoon Anthoni Salim's First Pacific, an
investment holding firm listed in Hong Kong, owns 46% already.
    Mitsui and JOIN combined would take up to 20% of Metro
Pacific if the offer is successful, with the remainder to be
bought by existing shareholders including First Pacific and
other Filipino partners. 
    Metro Pacific's shares were suspended from trading on
Tuesday.
($1 = 55.29 Philippine pesos)

 (Reporting by Jaskiran Singh in Bengaluru and Neil Jerome
Morales in Manila; Editing by Rashmi Aich and Jamie Freed)
 ((Jaskiran.Singh@thomsonreuters.com;
manila.newsroom@thomsonreuters.com))