International Container Terminal Services Inc. (ICTSI) is acquiring Manila Harbour Center Port Services Inc. (MHCPSI) for roughly P2.45 billion to “generate synergies and value-accretive returns” for its shareholders.
Based on a disclosure to the local bourse, the Razon-led port operator has signed a share purchase agreement with Prime Strategic Holdings Inc. (PSHI) for the acquisition of 25 million secondary shares in MHCPSI’s, representing 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. Last year, 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.
Meanwhile, PSHI is a related party of ICTSI as both are under common ultimate ownership. “Nonetheless, the transaction is arms-length and is supported by a fairness opinion issued by an independent public accounting firm. 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 regulatory filing read.
The transaction is expected to “generate efficiencies and benefit from synergies across the entire Manila Bay waterfront,” as 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.
“The purchase price will be entirely paid in cash on closing,” the disclosure read.