Infrastructure conglomerate Metro Pacific Investments Corp. may consider doing another round of share buyback as its stock remains “severely undervalued”, a top executive said.
MPIC chief finance officer Chaye Cabal-Revilla said in a recent news briefing the company was not getting full valuation even after fully utilizing a P5-billion share repurchase plan.
“With respect to the value of MPIC, obviously it is undervalued at P4.50. If you take a look at market value of Meralco, you are only valuing Meralco at the discounted rate, and everything is free. It is severely undervalued,” Revilla said.
Revilla said the company would discuss its strategy on the share buyback in the next board meetings.
One of the options being considered by MPIC to boost share value is to hold initial public offerings for other subsidiaries in toll road, hospital and water businesses, she said.
Metro Pacific Tollways Corp. seeks to hold an IPO after the completion of major toll road projects, while Maynilad Water Services Inc. plans to conduct a maiden share offering in 2025.
Revilla said MPIC was also getting strong interests from foreign investors. “Yes, we’re getting offers even because infrastructure is relatively stable business. In terms of businesses that we have, they cover the essential services of every Filipino, and also we have strong management pool and from governance perspective we are one of the best in the country. So for any shareholder, your future and investment is good with us,” Revilla said.
Malacañang announced during President Ferdinand Marcos Jr.’s recent state visit in Japan the Philippines secured a $600-million investment pledge for infrastructure projects from MPIC and Japan’s Mitsui & Co.
Mitsui was earlier reported to have expressed interest in acquiring a 20-percent stake in MPIC.
Revilla said the conglomerate has an existing partnership with Mitsui in power. It also has several partnerships with other Japanese firms for other subsidiaries.