Metro Pacific Investments Corp. (MPIC) will divest its 50-percent stake in the country’s largest jet fuel import terminal, potentially unlocking around $148 million in fresh capital as it sharpens its focus on other businesses.
The company led by billionaire Manuel Pangilinan said in a statement on Wednesday it would sell its shareholding in Philippine Coastal Storage and Pipeline Corp. (PCSPC) to an affiliate of global infrastructure investment manager I Squared Capital (ISQ).
Singapore-listed Keppel Infrastructure Trust (KIT), which owns the remaining half of PCSPC, will likewise sell its stake to ISQ.
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ISQ currently has over $40 billion in assets under management, according to MPIC. Its businesses include utilities, energy, digital infrastructure, transport and environmental and social infrastructure globally.
While the deal values PCSPC at $510 million, MPIC vice president for business development Ryan Jerome Chua told the Inquirer the purchase price could end at around $296 million “after debt and other adjustments,” which would be split between MPIC and KIT.
The PSPC terminal at the Subic Bay Freeport Zone has a storage capacity of over 6 million barrels.
“The decision to divest is in line with our long-term strategy to focus on sectors where we can create the greatest value for the Philippines,” said Pangilinan, chair, president and CEO of MPIC.
Supporting energy needs
For its part, ISQ recognized PCSPC was an “essential infrastructure asset” that could support the Philippines’ rising energy requirements through product expansion.
“In addition to bioethanol and biodiesel, we will focus on expanding the asset’s capabilities to handle other biofuels, including sustainable aviation fuel,” ISQ senior partner Harsh Agrawal said.
The transaction is still subject to regulatory approvals, according to MPIC.
MPIC, whose other businesses include infrastructure and health care, initially bought 20 percent of Philippine Tank Storage International Holdings Inc., the parent firm of PCSPC, in 2020 for $67 million before gradually increasing its ownership to 50 percent.
Back then, MPIC noted that the acquisition in a new industry would help diversify its portfolio.
MPIC has recently been focusing on expanding its healthcare business under Metro Pacific Health Corp. after acquiring its 25th hospital in the country.
Earlier this month, subsidiary Metro Pacific Tollways Corp. and GIC, its partner Singaporean investor, finalized a $1-billion deal to acquire a 35-percent stake in the Trans-Java toll network in Indonesia.