Young bilyonaryo Kevin Wong has stepped into the void left by the Singapore-based partner of the Antonio Tiu-led Makati Subway project.
A source said Kevin, the son of casino junket operator Kim Wong, has agreed to invest at last P775 million in the subway project through Richer Today Inc. (RTI).
Kevin, who specializes in gaming and real estate, will focus on the subway’s property projects.
His entry comes after the Philippine Competition Commission (PCC) revealed that Singapore-based Redco Transit Development Pte. Ltd. had terminated the proposed acquisition of shares in Makati City Subway Inc. from Tiu’s Philippine Infradev Holdings Inc. and Hong Kong Binjiang Industrial Ltd.
“The parties withdrew their notification of the transaction currently undergoing merger review, and informed the MAO (Mergers and Acquisitions Office) that they decided not to pursue the transaction and to terminate their share purchase agreement due to circumstances arising from the Covid-19 (coronavirus disease 2019) pandemic,” the PCC said in a statement.
Tiu announced last October that Redco’s affiliate, Hui Gao Investments Development Ltd., would inject $102 million as equity investment and $200 million in credit facility to the Philippines’ first intra-city subway system.
Redco is an integrated property developer listed in the Hong Kong stock market which specializes in mid-to-high-end residential and commercial property projects in China. The anti-trust body was formally informed by the parties on March 9.
“The MAO respects the parties’ decision to withdraw, modify, or re-file their agreements, and stands ready for future notifications on this transaction,” the PCC said.
According to the anti-trust body, the parties have full discretion in carrying out decisions on their business strategies and operations.
“For its part, the MAO carries out its functions in a non-discriminatory manner in accordance with the statutory timelines and regulatory requirements in merger reviews, with this transaction as no exemption,” the PCC said.
The parties notified the PCC of the share acquisition transaction in September 2020 and went through a notification process, including multiple consultations.
It also granted the parties’ requests for an extension of up to four months.
The Makati subway line will run from the Makati Central fire station to the University of Makati, also connecting the city’s key points, such as the central business district, Circuit City, Makati City Hall, and Makati hospital, as well as the transport systems in Makati, such as Mass Rail Transit (MRT) Line 3, the Pasig River ferry, and the proposed Metro Manila subway. (With a report from PNA)