Port operator International Container Terminal Services Inc. said it is acquiring an additional 15.17-percent stake in Manila North Harbor Philippines Inc. for P910 million, raising its total equity to 50 percent.
ICTSI, led by businessman Enrique Razon, said in a disclosure to the stock exchange it signed a share purchase agreement with Harbour Centre Port Terminal Inc. for the acquisition of 4.55 million shares in MNHPI.
The shares represent 15.17 percent of the total issued and outstanding shares of MNHP.
ICTSI said the completion of the share purchase agreement remained subject to a number of conditions such as the approval by the Philippine Ports Authority and the Philippine Competition Commission.
Upon completion of the transaction, ICTSI’s shareholdings in MNHPI will increase from 34.83 percent to 50 percent.
“This transaction will further improve the returns of ICTSI’s shareholders through this value-accretive acquisition,” ICTSI said.
Conglomerate San Miguel Corp owns a 43.44-percent stake in MNHPI.
MNHPI won the 25-year contract to manage, develop and operate the 52-hectare seaport terminal.
The company earlier committed to invest P14.5 billion to develop the port facility. Aside from developing passenger port terminal with a capacity to serve two million to three passengers a year, the company plans to build a container yard. The port serves close to 4,000 vessel calls annually.
ICTSI earlier reported a net income of $97.7 million in the first half, down 6 percent from $103.6 million it earned a year ago. Revenue increased 10 percent to $661.8 million from $603.7 million during the same period.
The company handled consolidated volume of 4.71 twenty-foot equivalent units in the first six months, or 4 higher higher than 4.54 million TEUs in the same period last year.
