Romero won't yield control of North Harbor to MPIC

MANILA, Philippines - Romero-led Harbour Centre Port Terminal Inc. (HCPTI) said it is not willing to give up control of the Manila North Harbour Port Inc. (MNHPI) to Metro Pacific Investments Corp. (MPIC).

MNHPI president Michael Romero told The STAR that giving majority control of MNHPI to MPIC will be against their commitment to modernize the dilapidated North Harbor which is the principal concern of Harbour Centre to the public.

Also yesterday, Romero revealed that HCPTI is consolidating its port operations business in a new vehicle – Harbour Centre Port Holdings Inc. that will own the major ports of the Romero family, in preparation for the group’s planned public offering.

He said they have already signed an agreement with BDO Capital to act as the main underwriter for the public float. The initial public offering (IPO) date is scheduled between October and November of this year with target proceeds of P1.5 billion to P3 billion, which will be used to finance existing projects and port expansion in other countries.

MPIC holds a 35-percent stake in MNHPI while HCPTI owns 65 percent. MPIC chairman Manuel V. Pangilinan earlier said that they want to increase their stake to 50 percent, but based on his recent pronouncements, they are now working on a higher percentage.

MPIC said it is currently in talks with the Romero family, which owns HCPTI, over the possibility of MPIC increasing its shareholdings and acquiring control of MNHPI, the joint venture company between MPIC and HCPTI.

MPIC and HCPTI earlier bagged the 25-year, P14.5-billion contract to modernize and operate the Manila North Harbor, the country’s busiest and premier domestic port.

Romero emphasized that their family has been in the ports operation business for more than a decade.

“Harbour Center is exploring all available means to resolve the issue beneficial to both parties,” he said, although he admitted that giving up control to MPIC is out of the question.

He explained that there might be some technicalities as far as MNHPI being majority owned by MPIC, especially since it is Harbour Centre which has the knowledge and experience on port operations.

But Romero said MPIC increasing its stake from 35 percent to 50 percent may be an acceptable proposition.

Harbour Centre has international break-bulk and bulk cargo operations at its own port in Manila. Romero said while their international operations still account for a large part of their revenues, Manila North Harbor generates bigger volumes at 14.5 million tons compared with Harbour’s six to 6.5 million tons.

MPIC chairman Manuel Pangilinan earlier said that they have to come to terms with the Romero family on whether MPIC, the Philippine flagship of Hong Kong-based First Pacific Co., has the ability to acquire control of MNHPI or just step out of the picture.

 “We’re receiving feedback from shipping companies and the banks that they would like us to increase our stake,” MPIC president Jose Ma. Lim earlier said, adding that changes in the ownership of MNHPI would require approval of the Philippine Ports Authority (PPA), which awarded the contract to MNHPI.

The creation of a joint venture company between MPIC and HCPTI was one of the requirements set by PPA as part of the Manila North Harbor contract.

MNHPI earlier said that it is spending around P7 billion over the next six years for the modernization of North Harbor.