INTERNATIONAL Container Terminal Services, Inc. (ICTSI) said Wednesday it has secured all approvals needed to increase its stake in Manila North Harbor Port, Inc. (MNHPI).
The Razon-led port operator told the stock exchange it received a letter from the Philippine Ports Authority (PPA) approving the transfer of shares representing 15.7% of MNHPI to ICTSI.
“This approval is the last of the (conditions precedent) required for the effectivity of the Share Purchase Agreement (SPA), wherein MNHPI agreed to the transfer of 4,550,000 shares (representing 15.7% of MNHPI) to ICTSI,” it said.
ICTSI signed the SPA with Harbour Centre Port Terminal, Inc. (HCPTI) in September 2018 to acquire MNHPI shares at P200 each, or a total of P910 million. This increases ICTSI’s stake in the Manila North Harbor operator to 50% from 34.83%.
Aside from the PPA, ICTSI also sought the approval of the Philippine Competition Commission, among others.
When the transaction is complete, ICTSI will hold the biggest stake in MNHPI at 50%. San Miguel Holdings Corp. will own 43.33%, IZ Investment Holdings, Inc. will have 6.50% and Petron Corp. will retain 0.17%.
In 2017, ICTSI acquired Petron’s 34.83% share in MNHPI for P1.75 billion.
MNHPI holds the 25-year concession to operate, manage and maintain the Manila North Harbor, which ends in November 2034.
ICTSI has set its capital expenditures this year at $380 million, which will be used to support the expansion of its terminals and maintenance works. — Denise A. Valdez