MPIC aims to seal Air21 deal within Q2

METRO PACIFIC Investments Corp. (MPIC) aims to seal its acquisition of logistics firm Air21 within the second quarter.

“I think it will close this second quarter,” MPIC Chairman Manuel V. Pangilinan told reporters in the sidelines of a Philippine Disaster Resilience Foundation event in Clark, Pampanga on Wednesday.

Air21’s services include door-to-door deliveries, land transfer services, ship transfer, and warehouse management for inventories. The company was founded by former Customs Commissioner and Lina Group of Companies Chairman Alberto D. Lina in 1979.

Mr. Pangilinan said the listed infrastructure conglomerate may have to start with a minority share in Air21, noting that the option to increase its stake in the future is still up for discussion.

While the MPIC executive declined to give the purchase cost for Air21, he said this would be the company’s largest acquisition so far should they get a majority share.

MPIC has been ramping up its purchase of logistics firms in the previous years, snapping up Ace Logistics, Inc. for P280 million in 2017. It has also acquired Basic Logistics Corp.’s assets for P2 billion in 2016.

Other logistics firms MPIC has acquired include A1 Move Logistics, Inc., Philflash Logistics, Inc., and BasicLog Trading and Marketing Enterprises.

Mr. Pangilinan said they will probably have “just one or two more” acquisitions after the Air21 deal is completed.

“Then pahinga na muna siguro. Wala nang malalaki ngayon na available. There are very few logistics companies in the Philippines that are full-service logistics operators,” he said.

The company had earlier disclosed its plan to spend P6 billion for the acquisition of logistics-related businesses this year. This forms part of MPIC’s P100-billion capital spending plan in 2018, targeted to boost its toll roads, water, power, rail, hospital, and logistics segments.

MPIC booked a core net income of P14.1 billion in 2017, higher by 17% year on year on the back of its increased presence in the power industry.

MPIC shares shed two centavos or 0.37% to close at P5.33 each.

MPIC is one of three Philippine subsidiaries of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls.