LT Group Group Inc., the listed holding company of tycoon Lucio Tan, has boosted the capital of infrastructure unit Asia’s Emerging Dragon Corp. by another P900 million.
LT Group said in a disclosure to the stock exchange Tuesday it subscribed to nine million common shares from the unissued capital stock of AEDC at P100 apiece for a total price of P900 million to be paid in cash.
LT Group indirectly owns AEDC through Kenrock Holdings, Inc.
“Since AEDC is involved in infrastructure projects and is part of the proponents to the Naia project, LTG deems it necessary to support AEDC in its bid to take part in the development of the airport by infusing additional capital,” the conglomerate said.
AEDC is a part of a consortium of seven conglomerates that recently obtained an original proponent status from the Department of Transportation for the rehabilitation, upgrade, expansion, operation, and maintenance of the Ninoy Aquino International Airport for 15 years.
Other members of the so-called super consortium are Aboitiz InfraCapital Inc., AC Infrastructure Holdings Corp., Alliance Global Group Inc., Filinvest Development Corp., JG Summit Holdings Inc., and Metro Pacific Investments Corp.
The super consortium’s P102-billion proposal involves expanding and interconnecting the existing terminals of Naia, upgrading airside facilities, developing commercial facilities to increase airline and airport efficiencies, enhancing passenger comfort and experience and elevating the status of Naia as the country’s premier international gateway.
The project aims to increase Naia’s capacity by up to 100 million passengers a year from about 40 million passengers last year.
The upgrade will elevate Naia to the level of major regional airports, such as Changi in Singapore and Suvarnabhumi in Bangkok. It is also seen to become a viable transit hub in Southeast Asia.
The Naia Consortium tapped Changi Airports International Pte. Ltd. of Singapore to provide technical support in master planning, operations optimization, and commercial development.
The consortium’s proposal is still subject to the review and approval by the National Economic and Development Authority board and to a Swiss Challenge to comply with the requirements of the Build-Operate-Transfer Law.