THE PHILIPPINES’ sovereign wealth fund plans to spend about P8 billion to buy up to 11.2% of port operator Asian Terminals Inc. (ATI) in a “strategic” move to invest in the sector.
The transaction will lead to ATI’s voluntary delisting from the Philippine Stock Exchange.
In a statement on Tuesday, the Maharlika Investment Corp. (MIC) said it plans to buy a minority stake in ATI to “secure a significant position in one of the country’s vital trade gateways.”
The potential investment amount is at least P8 billion, MIC President and Chief Executive Officer Rafael D. Consing, Jr. said in a Viber message to BusinessWorld.
“The port sector is the circulatory system of the Philippine economy. My previous tenure in global logistics has reinforced the conviction that port infrastructure is not merely a business, but a strategic national asset,” he said in the statement. “We are deploying the Fund to capture value from critical utilities that possess high barriers to entry and a direct correlation to the country’s GDP (gross domestic product) growth. This ensures that our portfolio is resilient, cash-generative, and aligned with national progress.”
“Our entry into ATI is a definitive move to anchor these assets within the Philippine financial ecosystem. By securing our position in this utility, we are enhancing our sovereign capability to generate sustainable wealth, which is inextricably linked to the nation’s long-term economic security.”
The MIC is seeking to conduct a tender offer for ATI’s shares at P36 each.
“The acquisition will be carried out through both a direct acquisition of shares from, and a tender offer to, existing public shareholders, running in parallel with ATI’s voluntary delisting from the Philippine Stock Exchange,” it said. “By entering during the delisting process, MIC maximizes the efficiency of its capital deployment, securing an institutional-grade position in a mature, revenue-generating utility.”
The MIC is expected to hold about 11.2% of ATI’s outstanding capital stock once the tender offer is completed, the listed company said in a disclosure to the stock exchange.
“ATI’s move to delist is a strategic step to optimize the company’s structure for long-term growth, enabling faster decision-making, greater investment flexibility, and enhanced operational capabilities. This allows ATI to advance its plans for efficiency, infrastructure modernization, and market development, aligned with its mandate to make trade flow efficiently and sustainably,” it added.
Trading of ATI shares was suspended on Tuesday following the announcement. On Monday, ATI shares closed at P34.30 each. — Aubrey Rose A. Inosante
