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Metro Pacific Investments Corp. (MPIC), together with Keppel Infrastructure Trust (KIT), has completed the acquisition of Philippine Coastal Storage & Pipeline Corporation (PCSPC)
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MPIC and KIT also entered into a shareholders’ agreement to govern their relationship in managing the facility
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PCSPC is the largest independent storage facility in the Philippines with a storage capacity of about 6 million barrels
Metro Pacific Investments Corp. (MPIC), together with Keppel Infrastructure Trust (KIT), has formally acquired Philippine Coastal Storage & Pipeline Corporation (PCSPC), the largest petroleum products import terminal in the Philippines.
MPIC in a regulatory disclosure said they completed on January 29 the acquisition of 100% of the total issued capital stock of Philippine Tank Storage International Holdings, Inc. (PTSI) from Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Government Service Insurance System and Langoer Investments Holding B.V.
READ: MPIC to invest in petrol import storage terminal
PTSI wholly owns PCSPC, the largest independent storage facility in the Philippines with a storage capacity of about 6 million barrels when it completes an expansion in early 2021.
The shares of PTSI were indirectly acquired by MPIC and KIT through a Philippine holding company, KM Infrastructure Holdings, Inc., which was 80% owned by Bay Philippines Holdings Corp and 20% owned by MPIC.
Also on January 29, Bay Philippines and MPIC entered into a deed of sale whereby KIT agreed to sell to MPIC about 30% of the outstanding shares of KM Infrastructure, for a total purchase price of some P4.1 billion.
Following the KM sale, MPIC’s total shareholding in KM Infrastructure increased to about 50% of its total outstanding capital stock.
In addition to paying the purchase price for the additional 30% stake, MPIC also agreed to reimburse KIT for transaction costs and expenses relating to the sale of said stake.
MPIC and KIT also entered into a shareholders’ agreement to govern their relationship in managing KM Infrastructure and its subsidiaries, the deal containing, among others, customary governance provisions, transfer provisions and deadlock resolution mechanisms.
Through this investment, MPIC earlier said it will be able to diversify its portfolio and revenue streams in a new industry vertical with strong growth potential. The company noted that PCSPC generates stable cash flows via take-or-pay contracts with high-quality off-takers.
Located in the Subic Bay Freeport Zone, PCSPC is a 150-hectare facility comprised of 86 storage tanks, two piers and a pipeline infrastructure connecting the entire facility. It provides a well-connected distribution hub to the largest economic catchment area—Metro Manila and north and central Luzon.
MPIC’s portfolio of infrastructure assets include power, toll roads, and water, as well as logistics, healthcare and light rail, which are all primarily located in the Philippines.
KIT’s portfolio of infrastructure assets, on the other hand, includes waste treatment, water desalination, power generation and transmission, piped gas production and retailing, and chemicals manufacture and distribution, which are primarily in Singapore and Australia.
