Razon, Ang take control of Manila North Harbor
Two of the country’s tycoons, Enrique Razon and Ramon Ang, are now the majority owners of Manila North Harbor Philippines Inc. (MNHPI) after Razon’s International Container Terminal Services Inc. (ICTSI) raised its stake in the domestic port to 50 percent last week.
The two tycoons have effectively wrested control of the company from businessman Reghis Romero II who for years had been stuck in a legal battle with his son Mikee over the control of the Romero family’s Harbour Centre Port Terminal Inc., which used to be the majority owner of MNHPI.
Manila North Harbor marks the first partnership between the two tycoons, Razon told The STAR last week.
Razon is chairman of ICTSI and casino resort Solaire Resort & Casino, while Ang is the president
and chief operating officer of conglomerate San Miguel Corp.
Last week, ICTSI raised its stake in MNHPI to 50 percent from 34.83 percent by acquiring 4.5 million shares in MNHPI from Romero’s Harbor Centre. The shares represent an additional 15.17 percent of the total issued and outstanding shares of MNHPI. The deal is still subject to the approval of the Philippine Ports Authority and the Philippine Competition Commission.
SMC, meanwhile, has a 43 percent stake in MNHPI. The remaining shares are held by businessman Iñigo Zobel, chairman of listed Top Frontier Investment Holdings Inc., the majority shareholder of SMC and a director of SMC as well. Thus, effectively, Manila North Harbor is now a 50-50 joint venture between the ICTSI and the SMC Group.
Both Razon and Ang are excited to redevelop the 55-hectare port located in Tondo, Manila.
During SMC’s annual stockholders meeting in June, Ang said the port would eventually become an international container port.
Razon, for his part, said, “the purchase was in sync with ICTSI’s aim to interconnect marine terminals and dry ports in Luzon to facilitate cargo movement within the country.”
Manila North Harbor holds a 25-year contract to operate and expand Manila North Harbor, the country’s oldest and busiest port.
It was not an easy acquisition for both tycoons because the domestic port has been caught in the middle of a tug-of-war between the elder Romero and his son Mikee.
In fact, the Romero family’s former partner, Metro Pacific Investments Corp. (MPIC) pulled out of an earlier joint venture because of control issues.
SMC’s Petron then saw the opportunity to enter MNHPI in 2011, acquiring MPIC’s 34.83 percent stake in the domestic port. At the time the Romeroowned Harbor Centre Ports Terminal held the remaining 65 percent of the ports operator.
In 2016, parent firm SMC also acquired a 43.44-percent stake, raising the conglomerate’s interest to 78.33-percent.
But Ang sold Petron’s 34.83 percent stake to Razon’s ICTSI last year, marking the latter’s entry in Manila North Harbor.
With the two veteran business tycoons at the helm, the country’s oldest domestic port could see a lot of redevelopment and modernization.
SMC alone has already set aside P22.9 billion for the ongoing rehabilitation and modernization of facility, which is targeted for completion in 2022.
Of the amount, SMC through SMC Infrastructure, has already poured in P13.8 billion as of the first half of the year for the improvement and upgrading of the passenger terminal complex, according to company documents.
The remaining amount would be used for Phase 2 of the rehabilitation, which involves improvement of other facilities. The second phase of the project is targeted for completion in December 2022.
Phase 1 includes the development of berth and quay lines, reclamation of the piers, rehabilitation of container yards and the construction of new passenger terminals, which began in 2011, according to SMC.