Sorianos pull out of ICTSI, sell 23% stake to Razon for P5.91B

Investment holding firm A. Soriano Corp. (Anscor) has withdrawn from the port operations business with the sale of its 23-percent stake in International Container Terminal Services Inc. (ICTSI) to the port operator’s chairman and president, Enrique Razon, for P5.91 billion (approximately $115 million).

In a disclosure to the Philippine Stock Exchange, Anscor said the transaction, crossed through the stock market yesterday, involved 503.3 million shares sold for P11.75 each.

Razon has set up a new company to hold his newly-acquired ICTSI stake.

Anscor said it expects to book a profit from the sale of its investment in ICTSI and will declare a special one-time cash dividend of P1.25 a share when it receives the proceeds from the sale.

Based on Anscor’s 2.5 billion outstanding shares, the cash dividend payout will amount to about P3.13 billion.

The company said its board will meet next month to set the record and payment dates for the dividend.

Anscor did not say how much Razon’s total shareholdings in ICTSI would amount after the transaction. But according to Bloomberg data, he controlled at least 23 percent before the purchase.

Anscor said it considered Razon’s offer considering it as an opportune time to realize its investment in ICTSI in the last 18 years, representing an annual return of 22 percent.

But analysts are puzzled as to why Anscor is selling ICTSI, said to be the only investment of the company that is making money.

ICTSI, formed in the 1980s by Razon’s father with partners including the Soriano family, now operates ports in five countries. Its Madagascar and Naha, Okinawa terminals, which started in the last seven months, may boost earnings even as "prospects are down" for its biggest port in Manila, Razon said last month.

The company’s 2005 net income attributable to shareholders rose 18 percent to P1.34 billion as sales increased 12 percent to P10.6 billion, it said in March.

Anscor earlier said it would focus on the business process outsourcing sector to take advantage of its robust growth potentials. Around P300 million to P350 million will go to the expansion of its IT-related businesses.

SPI Technologies plans to expand its capabilities to provide its clients a complete range of services. It recently launched revenue and cost containment programs that will enable the company to achieve profitability.

eTelecare International, the call center arm of Anscor, plans to go public in early 2007.

It is eyeing listing both at the Philippine Stock Exchange and the US-based Nasdaq.

Another subsidiary, International Quality Manpower Services Inc. (IQMAN), is preparing to deploy nurses to two clients in the US this year.

At end-2005, the company pooled some 500 nurses for deployment to the US.

Meanwhile, Multi-Media Telephony Inc. is in "serious exploratory discussions" with Globe Telecom, Smart Communications, Sun Cellular, Digitel, and BayanTel for a mobile service rollout.