Petron sells 34.83% stake in Manila North Harbour to ICTSI

Petron Corp. has entered into a share purchase deal with International Container Terminal Services Inc. (ICTSI) covering shares in the Manila North Harbour Port Inc.

Joel Angelo Cruz, the vice president, general counsel and corporate secretary of Petron, told the Philippine Stock Exchange the agreement involves 10,449,000 shares of Manila North Harbour, valued at P1.75 billion.

Selling its stake in Manila North Harbour will allow Petron was "to focus on the main business" of oil refining retail trade of petroleum products.

The share purchase deal will be completed once the conditions, including the approval of the transaction by the Philippine Ports Authority and other regulatory requirements have been met.

"Purchase price will be paid on closing date which is on October 30," Petron noted.

MNHPI is in the business of domestic port terminal operations at the Manila North Harbor and is under contract with the Philippine Ports Authority.

In a separate filing, Razon-led ICTSI said the transaction will allow it to contribute experience, expertise, state-of the-art technology, and infrastructure to enhance the operational efficiency of the domestic terminal at the Port of Manila and improve the traffic condition in Metro Manila.

"This transaction will further improve the returns of ICTSI’s shareholders through this value-accretive acquisition," it said. — Ted Cordero/VDS, GMA News