MPIC boosts stake in major oil import hub

Infrastructure and tollways conglomerate Metro Pacific Investments Corp. (MPIC) has further bolstered its presence in the petroleum storage and import business, hiking its stake in the company that owns the largest independent storage facility in the country to nearly half.

MPIC in a stock exchange filing yesterday said it acquired approximately 30 percent of the outstanding shares of KM Infrastructure for about P4.1 billion.

As a result of the transaction, MPIC said its total shareholding in KM Infrastructure increased to approximately 50 percent of its total outstanding capital stock.

KM Infrastructure is a Philippine holding company of MPIC and Keppel Infrastructure Trust (KIT), which indirectly acquired the Philippine Coastal Storage & Pipeline Corp. (PCSPC).

PCSPC is the largest independent storage facility in the country with a storage capacity of about six million barrels.

MPIC and Keppel Infrastructure Fund Management Pte. Ltd., in its capacity as trustee-manager of KIT, completed on Jan. 29 the acquisition of the 100 percent total issued capital stock of PCSPC-owner Philippine Tank Storage International Holdings Inc. from Macquarie Infrastructure Holdings (Philippines) Pte. Ltd,

Government Service Insurance System and Langoer Investments Holding B.V.

At the time of the transaction completion, KM Infrastructure was 80 percent owned by Bay Philippines Holdings Corp., an indirect subsidiary of KIT, and 20 percent owned by MPIC.

MPIC said it has entered into a deed of sale with Bay Philippines on the same day after the transaction completion, in which KIT agreed to sell to the company approximately 30 percent of the outstanding shares of KM Infrastructure.

MPIC said it also agreed to reimburse KIT for transaction costs and expenses relating to the 30 percent interest that it agreed to sell to the company.

It said the transaction is expected to strengthen the balance sheet of the company.

The addition of PCSPC is seen to further diversify MPIC’s portfolio and revenue streams in a new industry vertical with strong growth potential.

The 150-hectare facility comprises of 86 storage tanks, two piers, and a pipeline infrastructure connecting the entire facility.

Due to its location, PCSPC provides clients with a well-connected distribution hub to the largest economic catchment area – Metro Manila and North Luzon.