ICTSI to acquire Manila Harbour Center for ₱2.45 billion

International Container Terminal Services, Inc. (ICTSI) announced on Tuesday that it has 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 ₱2.45 billion.

The amount is “subject to the standard and usual closing adjustments to acquire 25 million secondary shares representing 100% of MHCPSI’s issued and outstanding shares.”

The amount will be entirely paid in cash on closing and 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 at arm’s length and is supported by a fairness opinion issued by an independent public accounting firm.

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.

… This transaction is expected to generate synergies and value-accretive returns for ICTSI’s shareholders,” said ICTSI.

MHCPSI is a 10-hectare international breakbulk and bulk port 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.

ICTSI shares closed 0.28% higher at ₱143.50 apiece on Tuesday.

SOURCE: Business World