A wholly-owned subsidiary of International Container Terminals Services Inc. sold its stake in Hijo International Port Services Inc. to a corporation owned by the Tuason family for P325 million.
ICTSI said Abbotsford Holdings Inc. received an acceptable bank guarantee to cover the balance payment under the share purchase agreement it signed with Hijo Resources Corp.
AHI sold to HRC 162,500 shares or 65 percent of HIPSI for a total of P325 million.
The company said initial payment amounted to P95 million, and the balance would be paid in multiple tranches over the next eight quarters, supported by a bank guarantee. After the sale, AHI will no longer be a shareholder in HIPSI.
ICTSI said AHI sold HIPSI because the expected market for the latter did not materialize. HIPSI operates a private commercial port in Barangay Madaum, Tagum, Davao del Norte in the Gulf of Davao.
HRC, founded by the late Jose Tuason Jr., has business interests in agriculture, property development, leisure and tourism, food and port operations.
ICTSI earlier reported a net income of $294.5 million in the first half, up from $196.7 million it earned a year ago on the back of a 20-percent increase in revenues.
ICTSI said its terminals handled consolidated volume of 5,752,582 twenty-foot equivalent units in the first six months, or 5 percent more than 5,459,523 TEUs handled in the same period in 2021.