LISTED port operator International Container Terminal Services, Inc. (ICTSI) announced on Tuesday that it had entered into a share purchase agreement with Prime Strategic Holdings, Inc. (PSHI) to acquire 100% of the shares of Manila Harbour Center Port Services, Inc. (MHCPSI) for around P2.45 billion.
The amount is “subject to standard and usual closing adjustments to acquire 25,000,000 secondary shares representing 100% of MHCPSI’s issued and outstanding shares,” ICTSI said in a disclosure to the stock exchange.
It said the amount, which will be entirely paid in cash on closing, was negotiated and determined “based on a discounted cash flow method.”
“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.
“Transfer of the 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 company added.
As for the benefits of the transaction, the company said: “This transaction is expected to generate synergies and value-accretive returns for ICTSI’s shareholders.”
MHCPSI is a 10-hectare international breakbulk and bulkport facility at the Port of Manila.
It had a throughput of more than 4.3 million tons across its 865-meter quay last year and maintains a water depth of about 10 meters, according to ICTSI.
ICTSI shares closed 0.28% higher at P143.50 apiece on Tuesday. — Arjay L. Balinbin