ICTSI buys Manila Harbour Center Port Services for P2.45 billion

MANILA, Philippines — International Container Terminal Services Inc. (ICTSI) of tycoon Enrique Razon is beefing up further its domestic ports portfolio with the acquisition of a 10-hectare international breakbulk and bulk private port facility at the Manila Harbour Center.

In a stock exchange filing, ICTSI said it signed a share purchase agreement with Prime Strategic Holdings Inc., a related party under common ultimate ownership, to acquire 100 percent of the shares of Manila Harbour Center Port Services Inc. (MHCPSI) for P2.45 billion.

MHCPSI, which operates a private port facility located at the northern side of the Manila Harbour Center in the Port of Manila under a permit to operate granted by the Philippine Ports Authority, is mainly involved in handling and storage of international breakbulk and bulk cargo.

Last year, MHCPSI posted a throughput of over 4.3 million tons across its 865-meter quay and maintains a water depth of approximately 10 meters.

ICTSI said transfer of the facilities to its management is expected to take place by the middle of the year, once all conditions and required regulatory approvals have been obtained.

“The transaction, together with ICTSI’s Manila International Container Terminal and ICTSI’s joint venture Manila North Harbour Port Inc., puts ICTSI in a position to generate efficiencies and benefit from synergies across the entire Manila Bay waterfront,” the listed ports operator said.

The company said the transaction is also expected to generate synergies and value-accretive returns for ICTSI’s shareholders.