MANILA, Philippines - Metro Pacific Investments Corp. (MPIC) completed the acquisition of the assets of four logistics companies in a deal valued at P2.17 billion.
In a disclosure to the Philippine Stock Exchange MPIC, through newly-formed subsidiary MetroPac Movers Inc., sealed a deal to acquire the assets and key contracts of Basic Logistics Corp., A1Move Logistics, Inc., Philflash Logistics Inc. and BasicLog Trading and Marketing Enterprises.
“Fol lowing e x t ens ive study, MPIC has concluded that there is merit in expand ing into non-regulated infrastructure business. The strong demand for logistics services and the sector offers the prospect of attractive returns,” MPIC said.
After the completion of the transaction, a separate company will be designated by the selling companies to acquire 24 percent of MMI’s outstanding capital. “MMI will expand its logistics business utilizing the assets and businesses initially acquired from the sellers,” MPIC said.
MPIC earlier said it was moving into the logistics business because it is an unregulated business compared to its water utility and tollways ventures. Tollway arm Metro Pacific Tollways Corp. continues to await approval of inflation adjustments for the North Luzon Expressway (NLEx) and six years for the Manila- Cavite Toll Expressway (Cavitex), equivalent to 19 percent and 23 percent, respectively.
MPTC operates NLEx and CAVITEx via Manila North Tol lways Corp. (MNTC) and CAVITEx Infrastructure Corp. (CIC), respectively. For its water utility business Maynilad Water Services Inc., MPIC is claiming P3.44 billion for the failure of the Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS-RO) to implement a water rate increase in favor of the company. For the logistics business, the company is also providing room for a foreign partner.
To support organic growth, MPIC plans to invest five billion over a five-year period.