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Nickel producer Global Ferronickel Holdings Inc. will increase its holdings in Mariveles Harbor Corp. to 88% after acquiring an additional 24% share from Seasia Logistics
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MHC operates the Mariveles, Bataan dry bulk terminal
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The transaction will give MHC more control over operations of the port operator, FNI said
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The investment will provide easy and steady access to port services to FNI’s subsidiary, FNI Steel Corp., which is building a steel processing plant near the terminal
Global Ferronickel Holdings Inc. (FNI) is raising its stake in Mariveles port operator Mariveles Harbor Corp. (MHC) to 88% after its acquisition of an additional 24% shareholding in the company.
FNI in a February 8 disclosure to the Philippine Stock Exchange said the transaction would give it more control over the operations of MHC.
The company said its board had authorized FNI president Dante Bravo “to execute, sign, deliver and receive all papers or documents in connection with and pursuant to the foregoing authority.”
FNI will acquire the additional stake from Seasia Logistics Philippines Inc. for P192 million. FNI and Seasia will execute a deed of absolute sale of shares once the purchase price is fully paid.
The deal is expected to be concluded by March 10. No regulatory approval is needed, FNI said.
MHC, formerly Seasia Nectar Port Services Inc., operates the first purpose-built dry bulk terminal located inside the Authority of the Freeport Area of Bataan, formerly known as the Bataan Export Processing Zone, in Mariveles.
The port handles coal, clinker, silica sand, cement raw materials, steel, fertilizer and other dry bulk shipments.
The port was set up as a joint venture between the Nectar Group Ltd of the United Kingdom and Seasia Logistics, each of which held 40% of the port. Their other partner, Webcast Technologies, owned 20%.
FNI acquired a 40.05% stake in MHC by subscribing to 1.67 million common shares for P450 million. It then raised its shareholding to 64.03% by acquiring 23.98% from NGL for P192 million.
The investment in MHC will provide easy and steady access to port services to FNI’s subsidiary, FNI Steel Corp. (FSC), which is building a steel processing plant near the terminal.
The FNI board cleared in June last year the construction and operation of FSC’s steel plant in Mariveles that will have an estimated annual capacity of 1 million tons of steel rebars.
The plant is estimated to cost US$50 million and will have an annual output of 60,000 tons of steel bars.
A diversified Filipino company, FNI has stakes in nickel ore mining, logistics, cement and steel production, and port operations.
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