Razon-Led ICTSI Is Acquiring a Private Port Facility in Manila for P2.45 Billion
Listed International Container Terminal Services Inc. (ICTSI) has announced that it is shelling out P2.45 billion to purchase Manila Harbour Center Port Services Inc. (MHCPSI). In a disclosure with the Philippine Stock Exchange, the Razon-led port operator said the acquisition is to “generate synergies and value-accretive returns” for its shareholders.
ICTSI signed a share purchase agreement with Prime Strategic Holdings Inc. (PSHI) for the acquisition of 25 million secondary shares in MHCPSI’s, or 100 percent of its issued and outstanding shares, at P97.89 per share.
MHCPSI is a 10-hectare international breakbulk and bulk private port facility located at the northern side of the Manila Harbour Center, Port of Manila. In 2020, the company had a throughput of over 4.3 million tons across its 865-meter quay and maintains a water depth of approximately 10 meters.
“(T)he transaction is arms-length and is supported by a fairness opinion issued by an independent public accounting firm,” the disclosure read. “Transfer of the facilities to ICTSI management is expected to take place in mid-2021, once all conditions precedent and all required regulatory approvals have been obtained.”
The new facility will work hand in hand with ICTSI’s Manila International Container Terminal and ICTSI’s joint venture Manila North Harbour Port Inc. and will “generate efficiencies and benefit from synergies across the entire Manila Bay waterfront.”
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