Metro Pacific Investments Corp.(MPIC) has sold a portion of of its stake in Light Rail Manila Corp. (LRMC) to Japan’s Sumitomo Corp.
In a stock exchange filing, MPIC said Sumitomo has acquired a 34.9% stake in its subsidiary which holds an effective 55% stake in LRMC, the operator of the 20.7 kilometer LRT1.
Sumitomo will will effectively acquire 19.2% in the LRT1 concession, which will is effective until 2047.
LRT-1, currently with 20 stations, has started works on the extension of the system to Cavite.
“MPIC welcomes Sumitomo as a strategic stakeholder in the LRT1 project along with its current partners AC Infrastructure Holdings Corp. and Macquarie Investments Holdings (Philippines) Ltd.,” said Manuel V. Pangilinan.
“This investment by Sumitomo is a welcome illustration in their belief in the future of this project. We are all eager to resume operations of LRT-1 when the current extended quarantine is released,” Pangilinan said.
For its part, Sumitomo said it hopes to contribute to the development of rail infrastructure in the Philippines.
“Sumitomo is keen to share our 100 years-worth of global investment and operational experience. We are confident that our investment and expertise will provide the support the expanding Manila public transit infrastructure needs to grow, and to bring local communities even closer through the Cavite extension.
We thank MPIC for this unique opportunity and we look forward to many years of future investment in the Philippines,” the Japanese conglomerate said.
LRMC president and CEO Juan Alfonso said Sumitomo’s investment would help further enhance the ridership experience of LRT-1 passengers and ensure the completion of the railway’s extension to Cavite as soon as possible.