Metro Pacific Investments Corp. (MPIC) and its joint venture partner Keppel Infrastructure Trust (KIT) are selling their entire stake in Philippine Coastal Storage & Pipeline Corp. (PCSPC) to Terminal PH Investments Pte. Ltd. for $296 million.
PCSPC is the owner of the country’s biggest independent storage facility in Subic Bay Freeport.
MPIC owns a 50-percent stake in Hyperion Storage Holdings Corp., which fully owns PCSPC. The remaining 50-percent is owned by KIT.
MPIC is entitled to 50 percent of the total selling price which is expected to be about $148 million, MPIC’s parent firm First Pacific Co. Ltd. said in a disclosure to the Hong Kong Stock Exchange.
Terminal PH is an affiliate of I Squared Capital, an investment global fund focusing of energy, utilities, water and waste water management, transportation and telecommunications in North America, Europe and high-growth economies in Asia, Australia and South America.
MPIC is one of the country’s biggest infrastructure companies. Its investment portfolio spans energy, water distribution, toll roads, hospitals and railways.
It acquired its 50-percent indirect interest in PCSPC in early 2021 to diversify its portfolio and revenue stream.
“Having considered the financial performance, the business and operation status of PCSPC to date and the potential economic benefits that the disposal could bring to MPIC, MPIC considers it appropriate to divest and realize the value of the investment at this stage,” the company said.
PCSPC 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 6 million barrels and serves markets from Metro Manila to Central Luzon.
It serves blue-chip customers which include a government agency, oil and gas conglomerates, multinational corporations and domestic gasoline retailers.
A large majority of customers are on “take-or-pay” contracts, which significantly reduce PCSPC exposure to petroleum price and volume risks.
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