MANILA, Philippines – The Department of Transportation and Communications (DOTC) is pursuing the complete government takeover of the owner of the facilities of the Metro Rail Transit line 3 (MRT-3) amid the opposition of the major shareholder of Metro Rail Transit Corp. (MRTC).
Transportation Secretary Joseph Emilio Abaya said the government would push through with the proposed equity value buy out (EVBO) despite the opposition made by MRT Holdings Inc. (MRTH) that owns 100 percent of MRTC.
“We have our own legal counsel, we will push and they will push. So lets see. We will execute (the EVBO) and I am sure they will go to court,” Abaya said.
Abaya said the Board of Directors of both Land Bank of the Philippines and Development Bank of the Philippines have issued resolution to execute the buyout of the private shareholders of MRTC.
He explained that the government is just awaiting for an opinion from the Office of the Solicitor General (OSG) on the executive of the complete government take over.
According to Abaya, the acquisition of an 80 percent stake by Landbank and DBP was made during the term of former President Gloria Macapagal Arroyo.
Business ( Article MRec ), pagematch: 1, sectionmatch: 1
“That is what we inherited wherein the sale of economic rights without the political rights is allowed. Now how did that happen? Again we merely inherited it,” Abaya said.
The DOTC chief met with MRTC chairman Tomas de Leon Jr. the other day to discuss the buy out. De Leon is a director of Landbank.
David Narvasa, spokesman of MRT Holdings (MRTH), earlier said the Aquino administration needs the consent of at least a two-thirds of the private shareholders of MRTC for a complete government take over.
Narvasa added MRTH that owns 100 percent of MRTC has not authorized a compromise agreement with the government with regards to an EVBO.
“MRTH has informed the Board of Directors of MRTC that they have no authority to enter into any compromise with the Philippine Government and/or to agree to an Equity Value Buy-Out of the MRT-3 System without the express consent of at least two-thirds of MRTC’s shareholders pursuant to the provisions of the Corporation Code,” Narvasa said.
