Mic Holdings eyes $200-M funding to acquire seaports

MANILA, Philippines - Publicly-listed Mic Holdings, now majority owned by the Romero Group, plans to raise at least $200 million starting the second or third quarter next year to acquire and operate both domestic and foreign-based seaports.

In an interview, Mic chairman and president Michael Romero revealed that $100 million will be for the acquisition of six domestic ports while another $100 million at least will be for foreign ports. This will be financed from both internally generated funds and new equity, as Mic is planning to do a follow-on offering. “We might have to float another tranche. It depends on the size of the foreign port,” he said.

Meanwhile, Romero also revealed that Phase I of the modernization and redevelopment of Manila North Harbor will commence this year with the start of the construction of Terminal I or the container terminal. The second terminal or the passenger terminal will commence around the same time, he said.

Mic was acquired by Romero’s private investment company Sultan 900 Capital Inc. from the group of businessman Antonio “Tonyboy” Cojuangco recently for P175 million. Plans are to consolidate Romero’s existing port operations which include Harbour Centre and Manila North Harbor into Mic.

Sultan has acquired 95.2 percent of Mic and is conducting a tender offer to purchase the remaining four percent held by minority shareholders

Romero said Mic plans to acquire new companies, which include those that are into ports, information technology and logistics.

Romero disclosed that in addition to their two existing port operations in Manila, Harbour Centre is eyeing the acquisition of six others.

He also said that they are participating in biddings to operate international ports such as those in Guam, Vietnam, Russia, Sri Lanka and Indonesia.

Romero, president of Harbour Centre Ports Terminal Inc. (HCPTI) and chairman of Manila North Harbour Ports Terminal Inc. (MNHPI), said that they are being “swarmed” with offers from foreign investors as well as port operators who want to invest or enter into joint venture agreements with his group. “At the same time, we are also offering to enter into partnerships or acquire both domestic and foreign ports,” he disclosed.

Also yesterday, Romero said that the modernization program for North Harbor, the country’s biggest and busiest domestic port, is on schedule.

He said by October this year, they will begin construction of the container terminal. “We plan to finish Phase I in three to four years. This will raise our capacity at North Harbor from 630,000 twenty-foot equivalent units (TEU) last year to 1.2 to 1.5 million by 2013-2014,” he added.

For this year, North Harbor is targetting a capacity of 760,000 to 780,000 TEUs.

HCPTI owns 65 percent of MNHPI, a joint venture with Petron Corp., and holds the 25-year contract to develop, manage and operate North Harbor.

He also revealed that based on the masterplan submitted to the Philippine Ports Authoruty (PPA), MNHPI has allocated an initial one hectare to accomodate the existing needs of Petron for the depot of its vessels.

“What we know is that Petron is looking at 30 to 50 hectares. They are planning to put up a platform or reclaim but it will likely be a platform, like an oil rig, because it is cheaper,” he said.

Romero’s group also owns Harbour Centre, a 15-hectare multi-purpose private commercial terminal located within the 79-hectare port-city complex called Manila Harbour Centre.