METRO PACIFIC Investments Corp. (MPIC) and its partner Singapore-listed Keppel Infrastructure Trust (KIT) have completed the acquisition of the Philippine Tank Storage International Holdings, Inc. (PTSI), which owns the largest petroleum products import storage facility in the Philippines, the former announced on Monday.
“Further to our disclosure filed on 9 December 2020, on 29 January 2021, MPIC and Keppel Infrastructure Fund Management Pte. Ltd., in its capacity as trustee-manager of KIT, completed the acquisition of 100% of the total issued capital stock of PTSI from Macquarie Infrastructure Holdings (Philippines) Pte. Limited, Government Service Insurance System and Langoer Investments Holding B.V.,” the listed investment holding company told the local bourse in a disclosure.
PTSI wholly owns the Philippine Coastal Storage & Pipeline Corp. (PCSPC), which operates a storage facility in the Subic Bay Freeport Zone.
The facility will have a storage capacity of approximately 6 million barrels when it completes an expansion this year, according to MPIC.
PTSI’s shares were indirectly acquired by MPIC and KIT through KM Infrastructure Holdings, Inc., a Philippine-based holding firm, which, at the time of the transaction completion, was 80% owned by Bay Philippines Holdings Corp.
Bay Philippines Holdings Corp. was a 100% indirect subsidiary of KIT and 20% owned by MPIC.
MPIC also said that after the transaction was completed on Jan. 29, it entered into a deed of sale with Bay Philippines, with KIT agreeing to sell to the listed investment holding company 30% of the outstanding shares of KM Infrastructure.
The purchase price was approximately P4.1 billion, MPIC added.
As a result of the transaction, MPIC now owns approximately 50% of KM Infrastructure’s total outstanding capital stock.
MPIC Chairman Manuel V. Pangilinan has said the 150-hectare facility is a vital energy infrastructure for the Philippines, as it accounts for 36% of the total import terminal storage requirements of the country.
The listed firm’s attributable net income as of September 2020 dropped 57.67% to P5.01 billion from the previous year’s P11.80 billion.
MPIC shares closed 0.99% higher at P4.08 apiece on Monday.
MPIC is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group. — Arjay L. Balinbin