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MANILA – Metro Pacific Investments Corp said on Wednesday it will acquire Philippine Coastal Storage & Pipeline Corp (PCSPC), the country’s largest petroleum products import terminal, as it diversifies its portfolio and invests in new sources of revenue.
MPIC said that, together with the Keppel Infrastructure Trust, it entered into a purchase agreement with the Philippine Investment Alliance for Infrastructure, a closed fund managed by Macquarie Infrastructure and Real Assets to acquire the import terminal.
MPIC will initially hold a 20 percent stake in PCSPC’s parent company Philippine Tank Storage International Holdings Inc for $ 67 million, while an option to increase its stake to up to 50 percent is being discussed, he said.
PCSPC is the largest standalone storage facility in the Philippines with a storage capacity of approximately 6 million barrels, when it completes an expansion in early 2021.
Located in the Subic Bay Freeport Zone, PCSPC offers customers a distribution center well connected to the largest economic catchment area – Metro Manila and North and Central Luzon.
The 150-hectare facility consists of 86 storage tanks, 2 docks, and a pipeline infrastructure connecting the entire facility.
“With PCSPC accounting for 36 percent of the Philippines’ total import terminal storage requirements, MPIC views this facility as a vital energy infrastructure for the country. MPIC and its strategic partner KIT hope to further expand PCSPC’s capacity to bring additional energy security to millions of Filipinos, ”said Manuel V. Pangilinan, President of MPIC.
“The strategic acquisition of PCSPC will allow KIT to diversify, grow and strengthen the resilience of KIT’s distributable cash flow. As the largest petroleum products import storage facility in the Philippines, where demand for petroleum products is expected to grow, PCSPC presents an attractive opportunity for KIT to seize opportunities arising from strong macroeconomic prospects as well as strong fundamentals. growth of imported petroleum products in the Philippines, “said Matthew Pollard, CEO of Keppel Infrastructure Fund Management Pte Ltd.
Deutsche Bank, BPI Capital and NSQ Advisors are financial advisers for this transaction and Clifford Chance and SyCip Salazar Hernandez & Gatmaitan are legal advisers.
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Metro Pacific, Metro Pacific Investments Corp, MPIC, Keppel Infrastructure Trust, Philippine Coastal Storage & Pipeline Corp, PCSPC, ANC
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