Globalport eyes $200 million for acquisitions

MANILA, Philippines - Publicly-listed Globalport 900 is looking to acquire five new domestic ports and three international facilities this year as it is set to raise at least $200 million to finance a nationwide network of ports.

In an interview, Globalport 900 chairman and president Michael Romero said that two of the local ports will be in Mindanao while two others are in the Visayas.

Romero, also revealed that Globalport is looking at Sri Lanka, Indonesia and Guam and is currently in talks with owners for possible acquisition and/or management of the foreign ports.

Earlier, Romero told The STAR that Globalport plans to raise between $100 million to $150 million before the end of the year from a follow-on offering of its shares to the public.

He said the proceeds will be used to finance the acquisition and/or operation of both domestic and foreign-based seaports.

In addition to the secondary offering, Romero said they are also in talks with some foreign groups for possible new fund infusion of another $50 million to $100 million.

Plans are to consolidate Romero’s existing port operations, which include Manila North Harbor and Harbour Centre, into Globalport 900.

As for North Harbor (Harbour Centre Ports Terminal Inc. owns 65 percent while Petron Corp. owns the remaining 35 percent), he said that financial closing will be around the second week of April but all the funding are already in place.

“We have raised more than P3 billion, I think RCBC and Land Bank and Bank of Commerce are our lead banks, and they have approved the package for the North Harbor. Our funding is two times oversubscribed,” he added.

By the end of the year, Romero said his group will have nationwide operations. One of the ports that will be acquired is in Zamboanga and another in Bacolod.

He also said that Phase I of the modernization and redevelopment of Manila North Harbor, the country’s biggest port, has started with the ongoing construction of Terminal I or the container terminal. The second terminal or the passenger terminal will follow soon.