Pangilinan-led conglomerate Metro Pacific Investments Corporation (MPIC) is selling its 50 percent stake in Philippine Coastal Storage & Pipeline Corporation (PCSPC) for about $255 million (P14.55 billion).
In a statement, MPIC said it has entered into a definitive agreement to sell its stake in PCSPC to an affiliate of global infrastructure investor I Squared Capital (ISQ).
In tandem, Singapore-listed Keppel Infrastructure Trust (KIT) has also entered into a definitive agreement to sell its 50 percent stake in PCSPC to ISQ.
The transaction values PCSPC at an enterprise value of up to $510 million (P29.1 billion), subject to fulfillment of various performance milestones.
“MPIC intends to use its share of the proceeds to fuel the continued development of its core businesses, further reinforcing its position across key sectors of the Philippine economy,” the firm said.
PCSPC, located in the Subic Bay Freeport Zone, is the largest jet fuel, petroleum and sustainable fuels import terminal in the Philippines, boasting a storage capacity of over 6 million barrels.
The terminal plays a vital role in ensuring the reliable entry of liquid fuel products into the country, serving the needs of major commodity providers and other strategic interests.
ISQ is an independent global infrastructure investment manager with over $40 billion in assets under management.
The company focuses on a variety of sectors, including utilities, energy, digital infrastructure, transport, environmental infrastructure, and social infrastructure in North America, Europe, and high-growth economies in Asia, Australia, and South America.
ISQ is a team of over 280 people, headquartered in Miami with offices in Abu Dhabi, London, Munich, New Delhi, Sao Paulo, Singapore, Sydney and Taipei.
In addition to these on-the-ground investing and operations teams, ISQ also has a diverse portfolio of 86 companies in more than 70 countries.
"The acquisition of PCSPC has been pivotal in securing safe, reliable, and environmentally responsible fuel logistics for the Filipino market,” said MPIC Chairman, President, and CEO Manuel V. Pangilinan.
He noted that, “Under our stewardship, PCSPC has grown into a leader in fuel storage and logistics, with a strong commitment to safety and sustainability.”
“The decision to divest is in line with our long-term strategy to focus on sectors where we can create the greatest value for the Philippines.
“With its global expertise, we are confident that I Squared Capital will take PCSPC to the next level and ensure its continued contribution to the nation’s energy landscape," Pangilinan explained.
The transaction’s completion is subject to regulatory approvals and other customary closing conditions. Until then, MPIC, KIT, and ISQ will work closely with PCSPC’s management to ensure a seamless transition and continuity of operations.
“We are excited to acquire PCSPC, an essential infrastructure asset which plays a critical role in supporting Philippines’ growing energy requirements," said Harsh Agrawal, Senior Partner at I Squared Capital.
He added that, “We look forward to working with PCSPC’s strong management team to enhance PCSPC’s critical role in the Philippine economy and invest further in the PCSPC platform to expand into new products and areas.
“In addition to bio-ethanol and bio-diesel, we will focus on expanding the asset’s capabilities to handle other biofuels including sustainable aviation fuel.
“This acquisition aligns with our commitment to investing in essential infrastructure that fosters economic growth and long-term value creation within a sustainable model.”
UBS AG Singapore Branch acted as MPIC’s financial advisor for the transaction, while Rippledot Capital provided advisory services to I Squared Capital.