LISTED port operator International Container Terminal Services Inc. (ICTSI) announced on Friday that it was acquiring a 34.83 percent stake held by Petron Corporation in Manila North Harbor Philippines Inc. (MNHPI) for P1.75 billion.
According to ICTSI, it has signed a share purchase agreement with Petron for the acquisition of 10.4 million shares of MNHPI, which is engaged in domestic port terminal business at the Manila North Harbor under contract with the Philippine Ports Authority.
“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 congestion in Metro Manila,” ICTSI said in a disclosure to the Philippine Stock Exchange.
“This transaction will further improve the returns of ICTSI’s shareholders through this value-accretive acquisition,” ICTSI added.
ICTSI noted there will be additional investment to be made in relation to the said acquisition.
The purchase price was determined based on mutually agreed multiples of earnings, ICTSI said, and will be paid on the closing date of the transaction which is on October 30, 2017.
Completion of the share purchase agreement remains subject to several conditions, one of which is the approval of the acquisition by the PPA, according to ICTSI.
ICTSI opened at P106.70 per share on Friday and finished little changed at P105.60.