• ICTSI hikes stake in Manila North Harbor to 50%
International Container Terminal Services Inc. (ICTSI) is hiking its stake in Manila North Harbor Port Inc. (MNHPI) to 50 percent for nearly P1 billion.
The listed company of billionaire Enrique Razon Jr. told the local bourse yesterday that it signed on Wednesday a share purchase agreement with Harbour Centre Port Terminal Inc. (HCPTI) for the acquisition of the latter’s 4.55 million shares in MNHPI.
The shares, amounting to P910 million, represent 15.17 percent of the total issued and outstanding shares of MNHPI.
The purchase price, ICTSI said, was determined based on mutually agreed multiples of earnings.
“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,” the company said.
“This transaction will further improve the returns of ICTSI’s shareholders through this value-accretive acquisition,” it said.
ICTSI said the completion of the share purchase agreement remains subject to a number of conditions precedent, including approvals from the Philippine Ports Authority (PPA) and the Philippine Competition Commission.
Upon completion of the transaction, however, ICTSI’s shareholdings in MNHPI will increase from 34.83 percent to 50 percent.
In September last year, ICTSI bought the 35 percent stake of Petron Corp. in MNHPI.
MNHPI is a Philippine entity engaged in domestic port terminal business at the 56-hectare Manila North Harbor under contract with the PPA.
Prior to the share sale agreement, MNHPI was 65 percent owned by HCPTI, a company owned by the Romero family.
ICTSI is engaged in the business of port operations, management and development.
The company’s portfolio of terminals and projects spans developed and emerging market economies in the Asia Pacific, the Americas, Europe, Middle East and Africa.
The port of Manila has three facilities – the Manila North Harbor, the Manila South Harbor which is operated by Asian Terminals Inc., and ICTSI’s Manila International Container Terminal.