Philippine aviation support service provider MacroAsia Corporation and Japan-based Konoike Transport Co. Ltd have agreed to buy stakes in each other’s groundhandling service companies.
MacroAsia will acquire a 30% stake in Japan Airport Service Co. Ltd. (JASCO) through NKS Holding Co. Ltd., the Tokyo-based subsidiary of Konoike Transport and parent company of JASCO. In turn Konoike Transport will acquire a 20% stake in MacroAsia’s wholly owned groundhandling subsidiary MacroAsia Airport Services Corporation (MASCORP).
MacroAsia, in a regulatory disclosure, said the acquisition of stakes in JASCO will cost JPY1.825 billion (P846 million), while acquisition of shares in MASCORP will cost JPY2.344 billion. Both buy-ins will be fully paid in cash once conditions precedent are completed by November 29, 2019, and the transaction is concluded on December 6, 2019.
The cross-border transaction was signed at the Century Park Hotel, Manila on November 5.
MacroAsia said that through this partnership, “the sustainable growth of MacroAsia in the next 10 years will be reinforced.”
“Japan’s robust growth in local and international travelers will create tremendous demand on airport ground handlers and other aviation support service providers,” MacroAsia said.
“In fact, based on Japanese government targets by 2020 foreign travelers/tourists will reach 40 million and 60 million by 2030. These positive factors such as growth in inbound tourism, construction of additional runways and the marked increase in the number of flights operated by major airlines and LCCs [low-cost carriers] all point to a considerable increase in infrastructure development and demand stimulation at the national level.”
Currently, Konoike Transport’s airport division operates in six airports, namely, Narita, Haneda, Kansai, Fukuoka, Itami and Kobe. Konoike Transport—a listed company and one of the leading service contracting and logistics service providers in Japan—has grown to 27 companies natively and operates in 12 countries overseas.
MacroAsia said that Konoike intends to operate in other airports, with MASCORP seen to help it address the human capital issue.
The partnership will provide Konoike Transport, through MASCORP, the ability to secure needed human resources from the Philippines to support the expected growth in demand for passenger and groundhandling services, it added.
By expanding to Japan, MacroAsia said MASCORP will be able to generate additional revenues from the processing and sending of technical intern trainees to Japan while benefiting from the management exchange program where best practices from both countries can be adopted.
Other opportunities that MacroAsia is looking at are possible joint venture initiatives covering outsourced medical services, temperature-controlled warehouses, warehousing, and other logistics services. This is MacroAsia’s first foray into an airport outside of the Philippines.
Furthermore, MacroAsia said the partnership is aligned with the United Nations Sustainable Development Goals, “specifically SD Goal #8 for Decent Work and Economic Growth since Japan presents one of the best employment opportunities to foreigners, where a lot of Filipinos secure decent and respectable jobs, high salaries, with great living and working conditions and where labor rights are well protected.”