Both Philippine-based companies agreed the transaction will be carried out through an asset purchase agreement between Ace and MPIC’s subsidiary Premier Logistics Inc.
“The assets and business that will be acquired in the transaction will be utilized to further expand MPIC’s logistics business, which continues to offer attractive returns in view of the strong demand in the sector,” MPIC said in its statement.
Besides logistics, Ace is engaged in the business of warehousing, courier express and parcel delivery, e-commerce delivery, trucking, freight forwarding, customs brokerage and domestic shipping.
“Ace also has a strong presence in pre-delivery inspection in the automotive industry, which Premier intends to expand,” MPIC added.
Based on a definitve agreement, the conditions precedent include the sale by Ace of identified logistics assets, the novation of certain key contracts of Ace with its clients, and the transfer of certain key officers and employees of Ace to Premier.
The closing of the transaction is subject to the satisfaction of certain conditions precedent, which the parties intend to fulfill within the month of February.
An initial payment shall be delivered to Ace on the closing of the transaction.
The controlling shareholder of Ace will likewise acquire a 10 per cent interest in Premier after the transaction’s closing.
MPIC’s last trading price on January 24 decreased 0.85 per cent or P0.060 to close at P6.99 per share.