LISTED port operator International Container Terminal Services, Inc. (ICTSI) announced on Tuesday that its unit Abbotsford Holdings, Inc., is selling its shares in Davao-based port operator Hijo International Port Services, Inc. (HIPSI) for P325 million.
In a stock exchange disclosure, ICTSI said Abbotsford agreed to sell 162,500 or 65% shares of HIPSI to Hijo Resources Corp. (HRC).
ICTSI said Abbotsford divested its shares because the “expected market didn’t materialize.”
Abbotsford confirmed that it received an acceptable bank guarantee to cover the balance payment under the share purchase agreement with HRC.
HRC made an initial payment of P95 million and will settle the balance in multiple tranches over the next eight quarters, ICTSI said in its regulatory disclosure.
After the sale, Abbotsford will no longer be a shareholder of HIPSI, a joint venture company between ICTSI and HRC.
HRC is a diversified corporation with businesses in leisure, tourism, agribusiness, and property development.
On Tuesday, shares in ICTSI closed lower by 1.47% or P2.80 to P187.20 apiece. — Ashley Erika O. Jose