Negosyante News

November 24, 2024 8:37 am

ICTSI to acquire Manila Harbour Center for ₱2.45 billion

IMG SOURCE: PHILNEWS XYZ

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

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