Infrastructure conglomerate Metro Pacific Investments Corp. and Singaporean company Keppel Infrastructure Trust said Monday they completed the acquisition of the largest petroleum import terminal in the Philippines for $333.8 million.
KM Infrastructure, a joint venture company of Metro Pacific and KIT, acquired 100 percent of the total issued capital stock of Philippine Tank Storage International (Holdings), which owns the largest petroleum products import storage facility in Subic.
It bought the PTSI shares from Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Government Service Insurance System and Langoer Investments Holding B.V. on Jan. 29, 2021.
PTSI owns Philippine Coastal Storage & Pipeline Corp., which operates three tank farms and a marine terminal on 150 hectares in Subic Bay Freeport Zone. The terminal is strategically located to serve the demand from Metro Manila, Central and North Luzon.
KM Infrastructure was 80-percent owned by KIT-led Bay Philippines and 20 percent by Metro Pacific.
Metro Pacific said immediately following the completion of the acquisition of PTSI, it signed a share purchase agreement to increase its stake in KM Infrastructure by 30 percent for P4.1 billion.
KM Infrastructure will become a 50:50 joint venture company between KIT and Metro Pacific. Both parties also signed a shareholders’ agreement to govern their relationship in managing KM Infrastructure.
PCSPC has a storage capacity of 6 million barrels and generates stable cash flows via take-or-pay contracts with high-quality off-takers.
Its 150-hectare facility consists of 86 storage tanks, two piers and a pipeline infrastructure connecting the entire facility.
PCSPC serves blue-chip customers which include a government agency, oil and gas conglomerates, multinational corporations and domestic gasoline retailers. A large majority of customers are on “take-or-pay” contracts, which significantly reduce PCSPC exposure to petroleum price and volume risks.
Metro Pacific said the acquisition would diversify the group’s portfolio which includes water, toll roads, power generation and distribution, healthcare services, light rail and logistics.
It will also deliver incremental earnings to the conglomerate, according to MPIC.
KIT is the largest diversified infrastructure business trust listed on the main board of the Singapore Stock Exchange. Its portfolio of infrastructure assets includes waste treatment, water desalination, power generation and transmission, piped gas production and retailing and chemical manufacture and distribution primarily in Singapore and Australia.
The share price of Metro Pacific rose by P0.040 on Monday to close at P4.08.