"This acquisition in effect increases P&O commitment to draw from its worldwide experience in port operations and transfer this know-how to ATI," the company said in a statement to the Philippine Stock Exchange.
P&O Ports is a renowned operator of more than 50 port facilities around the world and is affiliated with the P&O Group, a global leader in maritime logistics services for more than 160 years.
"The purchase of additional shares affirms P&O’s steadfast confidence in ATI, a publicly-listed company that has established a good track record over the years in the port and logistics industry," ATI said.
The resulting buy-out increased P&O’s stake in ATI to 13.33 percent of outstanding capital stock. The acquired stocks roughly translate to 153.8 million shares valued at about P184.56 million based on the current market price of P1.2 per share. Total outstanding stocks is two billion common shares.
The decision of the Japanese trading and logistics giant to divest from ATI, is part of its strategy to expand its international business acitvities in the areas of railway projects, communications technology and industrial machinery.
Mitsui recently bagged impressive contracts such as a high-speed train project in Taiwan and an Electrified Double Track project in Malaysia.
ATI operates four of the country’s largest international ports – the Container Terminal and General Stevedoring Terminal at the South Harbor, Manila; the Port of Batangas, the Mariveles Grain Terminal in Bataan, and the Port of General Santos in Mindanao.
The company also operates logistics services for the Malampaya offshore supply base of Shell Philippines Exploration as well as three large logistics centers in Calamba, Laguna.
In 2001, ATI managed to increase its revenues by eight percent to P3.1 billion, and its net income to P510 million, despite a generally sluggish business environment particularly during the early part of the year.
Last month, ATI kicked off the construction of a P100-million passenger shipping terminal that would form part of a 10-year modernization program in that portion of the Manila Bay area.
The new facility to be put at Pier 15 of the South Harbor has been designed to service passengers of domestic shipping lines, with amenities comparable with those of modern airports.
In addition, the pier will be able to accommodate larger ships, hence opening up more opportunities for more efficient shipping operations and lower freight costs, he said.
The construction of the new facilitity is targeted for completion in six months, making it fully operational in time for the Christmas holidays.
Together with the Philippine Ports Authority, ATI will concentrate on the construction of the new terminal in line with the total P670-million project cost for the modernization program, including other support facilities and equipment.
The Pier 15 upgrade is a vital component in the government’s 10-year South Harbor master development plan, which calls for the upgrading of piers, tripling of container yard space, and acquisition of new equipment and technology.