Metro Pacific continues expansion into logistics

INFRASTRUCTURE conglomerate Metro Pacific Investments Corp. (MPIC) is further expanding its logistics business with another acquisition as it anticipates strong demand and growth in the industry.

MPIC, through its subsidiary Premier Logistics, Inc., is acquiring another logistics firm Ace Logistics, Inc. for P280 million, it told the Philippine Stock Exchange on Tuesday.

“The assets and business that will be acquired in the transaction will be utilized to further expand MPIC’s logistics business, which continues to offer attractive returns in view of the strong demand in the sector,” MPIC said.

Ace is engaged in the business of logistics, including warehousing, courier express and parcel delivery, e- commerce delivery, trucking, freight forwarding, customs brokerage and domestic shipping. It is also involved in pre- delivery inspection in the automotive industry, which Premier intends to expand, MPIC said.

The transaction will be carried out through an asset purchase agreement.

MPIC said the closing of the transaction will be subject to the satisfaction of certain conditions, which the companies aim to complete within February. Among the conditions include Ace selling certain logistics assets, securing new contracts with its existing clients, and transferring certain key Ace officers and employees to Premier.

“An initial payment shall be delivered to Ace on the closing of the transaction. The controlling shareholder of Ace will likewise acquire a 10% interest in Premier after the closing of the transaction,” the listed conglomerate added.

In May 2016, MPIC announced its foray into the logistics business with an initial P2-billion investment in a logistics company. The company said it is acquiring the assets of Basic Logistics Corp. and transferring them to a newly formed company called Metro Pacific Movers, Inc., which will provide services related to logistics, shipping, freight forwarding and e-commerce.

“There is strong demand for logistics services and the sector, which is broadly unregulated, offers the prospect of attractive returns,” MPIC said in a earlier statement.

Shares in MPIC closed at P6.90 apiece on Tuesday, 2.13% lower.

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. —