International Container Terminal Services Inc. said Tuesday it is acquiring an international breakbulk and bulk private port facility in Manila for P2.45 billion.
The port operator led by businessman Enrique Razon Jr. said in a disclosure to the stock exchange that it signed a share purchase agreement with Prime Strategic Holdings Inc. to acquire 100 percent of the shares of Manila Harbour Center Port Services Inc., a 10-hectare, international breakbulk and bulk private port facility located at the northern side of the Manila Harbour Center in Port of Manila.
Prime Strategic Holdings is a company also controlled by Razon. It has stakes in water and power distribution.
“PSHI is a related party of ICTSI as both under common ultimate ownership. Nonetheless, the transaction is arms-length and is supported by a fairness opinion issued by an independent public accounting firm,” ICTSI said.
ICTSI said it expects to take over the port facilities this year. “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,” it said.
MHCPSI had a throughput of over 4.3 million tons across its 865-meter quay in 2020 and maintains a water depth of about 10 meters.
MHCPSI operates a private port facility at the northern side of the Manila Harbour Center, Port of Manila under a permit to operate granted by the Philippine Ports Authority. It is mainly involved in handling and storage of international breakbulk and bulk cargo.
ICTSI reported a 51-percent increase in net income to $90.1 million in the first three months from P59.6 million in the same period last year.
The company’s gross revenues from port operations in the first quarter increased by 16 percent to $435.6 million from $375.8 million it booked in the same period in 2020.
ICTSI attributed the higher gross revenues “to volume growth, favorable container mix; tariff adjustments at certain terminals, new contracts with shipping lines and services, and increased storage and ancillary services particularly in the Americas segment; partially tapered by decline in trade activities at certain terminals primarily due to the impact of COVID-19 pandemic.”
ICTSI is a leading global developer, manager and operator of container terminals in the 50,000 to 3,350,000 TEU/year range.
It operates in six continents and continues to pursue container terminal opportunities around the world.