A venture led by businessman Manuel V. Pangilinan’s Metro Pacific Investments Corp. is taking over Philippine Coastal Storage & Pipeline Corp. (PCSPC), owner of the country’s biggest independent storage facility located in Subic Bay, after buying out its owners.
Metro Pacific said in a Philippine Stock Exchange filing on Monday it had completed the acquisition of 100 percent of Philippine Tank Storage International Holdings Inc. together with partner Keppel Infrastructure Fund Management Pte. Ltd, trustee-manager of Keppel Infrastructure Trust.
Philippine Tank Storage International Holdings wholly owns PCSPC.
PCSPC is located in the Subic Bay Freeport Zone and runs a 150 hectare facility comprised of 86 storage tanks, two piers and a pipeline infrastructure connecting the entire facility.It has the capacity to store up to six million barrels and serves markets from Metro Manila to Central Luzon.
Metro Pacific is one of the country’s biggest infrastructure companies. Its investment portfolio spans energy, water distribution, toll roads, hospitals and railways.
In the filing, Metro Pacific said it acquired Philippine Tank Storage International Holdings from Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Government Service Insurance System and Langoer Investments Holding B.V. Metro Pacific and Keppel acquired the shares using a Philippine holding company called KM Infrastructure Holdings Inc. The holding company was 20 percent owned by Metro Pacific and 80 percent held by Bay Philippines Holdings, part of the Keppel Group.
Also on the same day of the transaction, Metro Pacific said it acquired 30 percent of the outstanding shares of KM Infrastructure for P4.1 billion.
This boosted Metro Pacific’s stake in KM Infrastructure from 20 percent to 50 percent.
Moreover, Metro Pacific and Keppel Infrastructure Trust entered into a shareholders’ agreement to govern their relationship in managing KM Infrastructure and its subsidiaries. This included customary governance provisions, transfer provisions and deadlock resolution mechanisms. INQ