Philippines: MPIC forays into logistics, buys assets of four firms for $46.3m

Philippine-listed conglomerate Metro Pacific Investments Corp (MPIC) has forayed into the logistics business after acquiring assets of four firms for over $46.3 million (P2.1 billion).

MPIC said, its subsidiary MetroPac Movers Inc (MMI) completed the acquisitions on Thursday which covered key contracts of the four logistics firms, namely Basic Logistics Corp, A1Move Logistics Inc, Philflash Logistics Inc, and BasicLog Trading and Marketing Enterprises.

The transaction also included the transfer of certain key officers and employees of the four firms to MMI.

The value of the deal was determined based on the appraised value of the assets and the potential earnings of the businesses.

Related: Philippines: MPHH acquires 20% in Manila Medical Services for $708m

MPIC’s board of directors approved the planned acquisition early this month.

“MPIC has concluded that there is merit in expanding into non-regulated infrastructure business. The strong demand for logistics services and the sector offers the prospect of attractive returns,” MPIC said, in its statement.

The Pangilinan-led conglomerate noted that a separate company will be designated by the four logistics firms which shall then acquire 24 per cent of the outstanding capital stock of MMI.

“MMI will expand its logistics business utilizing the assets and businesses initially acquired from the sellers,” MPIC added.

Related: MPIC buys Meralco’s 26% stake in tech firm Indra Philippines for $7.1m

MPIC chairman Manuel V. Pangilinan earlier told local media that the logistics venture is also expected to benefit the warehousing requirements of the group’s existing businesses such as Manila Electric Co and PLDT.

MPIC recently reported a 7 per cent rise in consolidated core net income to P2.7 billion for the first quarter, ending March 31, 2016, from P2.6 billion in the first quarter of 2015 on the back of strong growth at all its operations.

The company said its core net income was lifted by strong traffic growth on all the roads held by Metro Pacific Tollways Corp and contributions from SCTEX and CII Bridges and Roads Investment Joint Stock Co, higher economic interest in Manila Electric Company, and continuing growth in the Hospital Group.

MPIC’s last trading price decreased 2.08 per cent or P0.130 to close at P6.12.

Related:

PH tollway firm MPTC completes 45% stake buy in Vietnam’s CII B&R for $86.9m

PH’s Metro Pacific inks 35-year concession deal for expressway project

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.