Maharlika fund to invest P8B in Tanco-led ATI

THE PHILIPPINES' sovereign wealth fund plans to spend about P8 billion to buy up to 11.2% of port operator Asian Terminals, Inc. (ATI) in a "strategic" move to invest in the sector.

- By Aubrey Rose A. Inosante and Ashley Erika O. Jose Reporters

The transaction will lead to ATI's voluntary delisting from the Philippine Stock Exchange (PSE).

In a statement on Tuesday, the Maharlika Investment Corp. (MIC) said it plans to buy a minority stake in the Tanco-led ATI to "secure a significant position in one of the country’s vital trade gateways."

The potential investment amount is at least P8 billion, MIC President and Chief Executive Officer Rafael D. Consing, Jr. said in a Viber message to BusinessWorld.

"The port sector is the circulatory system of the Philippine economy. My previous tenure in global logistics has reinforced the conviction that port infrastructure is not merely a business, but a strategic national asset," Mr. Consing said in the statement.

Mr. Consing said the fund aims to "capture value" from utilities that have "high barriers to entry and a direct correlation to the country’s GDP (gross domestic product) growth."

"This ensures that our portfolio is resilient, cash-generative, and aligned with national progress. Our entry into ATI is a definitive move to anchor these assets within the Philippine financial ecosystem," he said.

MIC's investment in ATI would be its second deal this year, following the acquisition of a 20% stake in Synergy Grid & Development Phils., Inc. for P19.7 billion which gave it a "foothold" in National Grid Corp. of the Philippines.

Maharlika has about P71 billion in deployable capital for future investments.

DELISTING