Billionaire Enrique Razon is consolidating his stake in Manila Harbor Center into International Container Terminal Services Inc. (ICTSI) as part of initiatives to boost efficiency in the Philippines’ busiest port.
ICTSI, which is controlled by Razon, has agreed to acquire Manila Harbour Center Port Services Inc. for 2.4 billion pesos ($51 million) from Prime Strategic Holdings Inc., according to a stock exchange filing. Prime Strategic is Razon’s holding company for his interest in infrastructure investments such as the Chico hydropower project in Northern Philippines.
“We believe there is a strong opportunity to drive greater efficiencies in the port area through better, more coordinated use of facilities and through the centralized management of bulk handling activities,” ICTSI said in a statement.
The transaction is expected to be completed by mid-2021. With the acquisition of Manila Harbor Center, ICTSI will own three terminals within the Port of Manila including its flagship asset the Manila International Container Terminal (MICT) as well as the Manila North Harbor Port, a joint venture between ICTSI and billionaire Ramon Ang’s San Miguel Corp.
“The transaction puts ICTSI in a position to generate efficiencies and benefit from synergies across the entire Manila Bay waterfront,” ICTSI said. MICT has an annual container handling capacity of 3.3 million 20-foot equivalent (TEUs), while the Manila North Harbor can handle 2.2 million TEUs every year. The Manila Harbor Center is a bulk terminal that moved over 4.3 million tonnes of cargo in 2020.
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ICTSI reported earlier this month a 51% growth in net profit for the first quarter as global trade recovered from the Covid-19 pandemic. Razon’s grandfather started the business with a port in Manila in 1916, and his father rebuilt it after World War II. Razon grew the business globally by establishing a presence in ports across Asia, the Middle East, Africa, Europe and Latin America.
Razon, 61, was ranked the second-richest person from the Philippines in the World’s Billionaires List published in April. With a net worth of $5.5 billion, he also has interests in power generation, water utility and gaming.