Manila-based International Container Terminal Services (ICTSI) has reached an agreement to buy a 34.83% stake in the Manila North Harbour Port Incorporated (MNHPI).
Under the contract, signed on September 21, the company would purchase 10,449,000 shares in the port from the Philippines’ oil refining major Petron Corporation.
ICTSI is paying a total consideration of PHP 1.75 billion (USD 34.5 million) in cash for the MNHPI’s outstanding shares. The purchase price would be paid on closing date which is on October 30, 2017.
“The transaction will allow ICTSI to contribute its experience, expertise and state-of the-art technology and infrastructure to enhance the operational efficiency of the domestic terminal in the Port of Manila and improve the traffic condition in Metro Manila,” ICTSI said in a stock exchange filing.
“This transaction will further improve the returns of ICTSI’s shareholders through this value-accretive acquisition,” the company added.
The completion of the sale purchase agreement is subject to several conditions, including approval of the transaction by the Philippine Ports Authority.
MNHPI is a Philippine entity engaged in domestic port terminal business at the Manila North Harbour under contract with the Philippine Ports Authority.
It operates a 52.5-hectare multi-purpose port terminal used in handling general cargo and passenger accommodation. It services close to 4,000 vessels per year, according to MNHPI’s website.