By James A. Loyola
International Container Terminal Services, Inc. (ICTSI) is investing P910 million to raise its stake in Manila North Harbor Philippines, Inc. to 50 percent from its current 34.83 percent interest.
MNHPI is a Philippine entity engaged in domestic port terminal business at the Manila North Harbor under contract with the Philippine Ports Authority (PPA).
In a disclosure to the Philippine Stock Exchange, ICTSI said it has signed a Share Purchase Agreement with Harbour Centre Port Terminal,, Inc. on September 5, 2018 for the acquisition of 4.55 million shares in MNHPI for P200 apiece.
“The subject shares represent 15.17 percent of the total issued and outstanding shares of MNHPI… Upon completion of this transaction, ICTSI's shareholdings in MNHPI will increase from 34.83 percent to 50 percent,” said ICTSI. It noted that, “the transaction will allow ICTSI to contribute its experience, expertise and state-of the-art technology and infrastructure to enhance the operational efficiency of the domestic terminal in the Port of Manila and improve the traffic condition in Metro Manila.
ICTSI said “this transaction will further improve the returns of ICTSI’s shareholders through this value-accretive acquisition” adding that “an additional investment will be made in relation to this acquisition.”
Almost a year ago, ICTSI bought Petron Corporation’s 34.83 percent stake MNHPI for P1.75 billion. The acquisition consisted of 10.45 million MNHPI shares at P167.48 per share.
Petron said it decided to divest from MNHPI so it can get a return on its investment and so it can focus on its main business of fuel refining and distribution.
Petron’s parent company San Miguel Corporation owns a 43.44 percent stake in MNHPI which it acquired from Harbor Center Port Terminal,, Inc.(HCPTI).