International Container Terminal Services, Inc. (ICTSI) on October 30 has conformed to all conditions relating to the acquisition of 34.83% shares worth P1.75 billion of Petron Corporation in domestic port operator Manila North Harbour Port, Inc. (MNHPI).
These conditions include approval from the Philippine Ports Authority (PPA), the port operator said in a disclosure to the Philippine Stock Exchange.
The compliance was also just in time for the payment of the purchase price, which ICTSI earlier said will be paid in cash on the closing date (October 30, 2017).
ICTSI on September 21 signed the share purchase agreement with Petron, which owns 35% shares of MNHPI, while the oil company’s mother unit, San Miguel Holdings Corp., owns 43.33%. The remaining shares are owned by Harbour Centre Port Terminal, Inc.
READ: ICTSI buys 34.83% of Manila North Harbor for P1.75B
The share purchase agreement involves acquisition of 10.449 million MNHPI shares, and was subject to several conditions, including PPA approval of the transfer, submission of consents and approvals under applicable law, and submission of Secretary’s Certificate containing approval of the purchase of shares.
The agreement does not require approval from the Philippine Competition Commission since it falls below the 35% ownership threshold.
With the MNHPI acquisition, ICTSI will have interests in both international and domestic port operations in Manila. ICTSI operates and develops ports around the world, with Manila International Container Terminal as its flagship operation. Its subsidiaries also operate ports in Subic, Misamis Oriental, Davao del Norte, and General Santos, among others.
MNHPI has a 25-year concession to modernize and operate domestic terminal North Port, in Manila North Harbor under a PPA contract.
ICTSI earlier said the acquisition will allow it to “contribute its experience, expertise and state-of the-art technology and infrastructure to enhance the operational efficiency of the domestic terminal in the Port of Manila and improve the traffic condition in Metro Manila.”
“This transaction will further improve the returns of ICTSI’s shareholders through this value-accretive acquisition,” it added.
ICTSI said an additional investment will be made in relation to the acquisition of MNHPI shares.
