SMC Shipping buys shares in Cebu shipyard

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A unit of San Miguel Corp (SMC), SMC Shipping and Lighterage Corp, has bought a majority stake in Keppel Cebu Shipyard Land, Inc (KCSLI) valued at P596.2 million.

In a disclosure to the Philippine Stock Exchange, Keppel Philippines Holdings (KPHL) said it had approved the sale of the entire 72% of KCSLI, which owns lands in Cebu, held by Goodsoil Marine Reality Inc (GMRI). KPHL owns 51% of GMRI.

KCSLI had already suspended shipbuilding operations since the second half of 2009 due to the global economic crisis.

SMC Shipping, 70% of which is owned by SMC, said the share buyout allows it to expand its business interests.

SMC Shipping provides cargo-handling, warehousing and shipping services to the San Miguel Group.

In the last three years, SMC Shipping invested P224.9 million to acquire three vessels — two brand-new and one retrofitted — that will transport raw materials for processed products of its parent firm, among others.

The company also recently acquired a second-hand 5,552.2-metric ton oil tanker worth P552.3 million for use in servicing the needs of oil refiner Petron Corp, another SMC subsidiary.