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International Container Terminal Services, Inc. (ICTSI) has acquired 100% shares of Manila Harbour Center Port Services, Inc. (MHCPSI) for P2.447 billion
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ICTSI signed the share purchase agreement with Prime Strategic Holdings, Inc. (PSHI) on June 1
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The transfer of facilities to ICTSI management is expected to take place in mid-2021 once all regulatory approvals are obtained
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The port operator said the transaction, together with its Manila International Container Terminal and Manila North Harbour Port, Inc will result in efficiencies and synergies across the Manila Bay waterfront
International Container Terminal Services, Inc. (ICTSI) has acquired 100% shares of Manila Harbour Center Port Services, Inc. (MHCPSI) for P2.447 billion.
In a regulatory disclosure, ICTSI said it signed the share purchase agreement with Prime Strategic Holdings, Inc. (PSHI) on June 1 to acquire 100% shares of MHCPSI, which operates a 10-hectare international breakbulk and bulk private port facility located at the northern side of the Manila Harbour Center, Port of Manila.
The acquisition further cements the dominance of ICTSI in the Manila Bay waterfront.
PSHI is a related party of ICTSI as both are under common ultimate ownership.
“Nonetheless, the transaction is arms-length and is supported by a fairness opinion issued by an independent public accounting firm,” ICTSI noted.
The acquisition amount of P2.447 billion is subject to standard closing adjustments to acquire 25 million secondary shares representing all of MHCPSI’s issued and outstanding shares. ICTSI said the amount was negotiated and determined based on a discounted cash flow method and the purchase price will be entirely paid in cash on closing.
The transfer of facilities to ICTSI management is expected to take place in mid-2021 once all conditions precedent and all required regulatory approvals have been obtained.
The port operator said the transaction, together with its flagship Manila International Container Terminal and joint venture Manila North Harbour Port, Inc., “puts ICTSI in a position to generate efficiencies and benefit from synergies across the entire Manila Bay waterfront.”
ICTSI currently owns 50% shareholdings in MNHPI, a domestic terminal in Manila North Harbor, after acquiring shares in 2017 and 2018.
MHCPSI is a company incorporated on May 13, 2016 and operates a private port facility located at the northern side of the Manila Harbour Center under a Permit to Operate granted by the Philippine Ports Authority. It is mainly involved in handling and storage of international breakbulk and bulk cargo.
In 2020, MHCPSI had a throughput of over 4.3 million tons across its 865-meter quay and maintains a water depth of approximately 10 meters.
