International Container Terminals Services Inc. has divested its shares in Davao-based Hijo International Port Services Inc. (HIPSI) for P325 million.
ICTSI said its unit Abbotsford Holdings Inc. (AHI) sold 162,500 shares, representing 65 percent of HIPSI, to a diversified firm owned by the Tuason family.
It received an initial payment of P95 million from Tuason’s Hijo Resources Corp. (HRC) with the balance to be paid in multiple tranches over the next eight quarters, supported by a bank guarantee.
AHI sold HIPSI because the expected market for the latter did not materialize.
HIPSI operates a private commercial port in Barangay Madaum, Tagum, Davao del Norte in the Gulf of Davao.
HRC, founded by late Jose “Boy” Tuason Jr., is engaged in agriculture, property development, leisure and tourism, foods and port operations.
ICTSI is a leading global developer, manager and operator of container terminals in the 50,000 to 3.5 million TEU/year range.
It operates in six continents and continues to pursue container terminal opportunities around the world.