INTERNATIONAL Container Terminal Services Inc. (ICTSI) is acquiring Petron Corp.’s 35% stake in Manila North Harbor for P1.75 billion.

In a disclosure to the stock exchange, the Razon-led port operator said it signed on Thursday a share purchase agreement with Petron to buy the latter’s 10.44 million shares in Manila North Harbour Port Inc. (MNHPI) at P167.48 each. This represents 34.83% of MNHPI’s outstanding shares.

“The completion of the Share Purchase Agreement remains subject to several conditions one of which is the approval of the acquisition by the Philippine Ports Authority (PPA),” ICTSI said.

Petron, in a separate disclosure, confirmed the deal to exit from MNHPI, which operates the domestic port terminal under contract with the PPA.

“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, which operates the Manila International Container Terminal (MICT), said.

ICTSI said it will pay the purchase price of P1.75 billion in cash on closing date Oct. 30.

Romero-owned Harbour Center Port Terminal Inc. still holds the remaining 65% stake in the Manila North Harbor. MNHPI signed the 25-year contract to operate, manage and maintain the North Harbor in Nov. 2009.

Container traffic at Manila North Habor reached 1.2 million twenty-foot equivalent units (TEUs) by end-2016, up from 1,115,577 TEUs in 2015.

Shares in ICTSI were unchanged at P105.60 apiece on Friday, while Petron shares slipped 2.46% to P10.30 each.

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