Razon acquires 34.8% stake in North Harbour firm

Petron Corp. yesterday said it has agreed to sell its 34.8-percent stake in Manila North Harbour Port Inc. (MNHPI) to International Container Terminal Services Inc. (ICTSI) of businessman Enrique Razon for P1.75 billion.

The homegrown oil refiner and retailer informed the Philippine Stock Exchange that it had signed an agreement with ICTSI related to the latter purchasing about 10.45 million shares in MNHPI.

“The completion of the sale purchase agreement is subject to several conditions, including approval of the transaction by the Philippine Ports Authority,” Petron said.

In selling its interest in the domestic port terminal business, Petron—a unit of the San Miguel group—said the rationale was to focus on its main business.

It was not clear whether the sale was caused in part by the rift within the family of Reghis Romero II, San Miguel’s partner in MNHPI, or if San Miguel will eventually sell its stake to ICTSI as well.

Based on the agreement between Petron and ICTSI, the purchase price would be paid in cash this coming Oct. 30.

The transaction between Petron and ICTSI scales back San Miguel’s shareholding in MNHPI to 43.5 percent from 78.3 percent in February 2016.

Back then, San Miguel Corp. president Ramon S. Ang said the conglomerate acquired a 43.4-percent interest in MNHPI in addition to Petron’s shareholding that was acquired in 2011.

This more recent acquisition was expected to have pushed the expected value of San Miguel’s infrastructure business to $20 billion by 2020, inclusive of the North and South Connector Road, the MRT Line 7 project, South Luzon Expressway and Tarlac-La Union-Pangasinan Tollway project.

Such value also included San Miguel’s participation in government projects subject to public bidding and future acquisitions and the projected cash flow from these projects based on the expected increase in vehicular traffic.

As concessionaire, MNHPI has the exclusive right to manage, operate, develop and maintain the country’s busiest port, the 55-hectare Manila North Harbor in Tondo, Manila.

The port facility has a total quay length of 5,200 meters and 41 berths, which can accommodate all types of vessels, including containerized and noncontainer craft.

Through MNHPI, San Miguel took over the port’s rehabilitation and modernization, with an initial phase that covers development of berth and quay lines, reclamation of the piers, rehabilitation of container yards and the construction of new passenger terminals, beginning in 2011 and expected to be completed within this year.

According to San Miguel, more developments were already in the pipeline for Phase 2, which is slated for completion by 2022.