MPIC to exit fuel logistics business

Conglomerate Metro Pacific Investments Corp. (MPIC) is exiting the fuel logistics business, selling its entire stake in Philippine Coastal Storage & Pipeline Corp. (PCSPC) for about $148 million.

- Richmond Mercurio

MPIC said it has entered into a definitive agreement to sell its 50 percent stake in PCSPC to an affiliate of global infrastructure investor I Squared Capital (ISQ).

Singapore-listed Keppel Infrastructure Trust (KIT), which owns the other half of PCSPC, is also selling its 50 percent stake in the company to ISQ.

In a filing, Hong Kong-based investment holding company First Pacific Co. Ltd. said that the total sale price for both the MPIC and KIT shares is approximately $296 million, in which MPIC is entitled to half of the total sale price or about $148 million, with possible additional earn-out payment of up to $25 million.

MPIC, on its end, said the transaction values PCSPC at an enterprise value of up to $510 million, subject to fulfillment of various performance milestones.

The completion of the sale is subject to regulatory approvals and other customary closing conditions.

Until then, MPIC said that KIT and ISQ would work closely with PCSPC's management to ensure a seamless transition and continuity of operations.