MANILA, Philippines — Listed nickel producer Global Ferronickel Holdings Inc. (FNI) is further increasing its stake in Mariveles Harbor Corp. (MHC).
In a disclosure to the Philippine Stock Exchange yesterday, FNI said it is acquiring an additional 24 percent shareholding in MHC to have more control over the operations of the port.
With this, its board authorized FNI president Dante Bravo “to execute, sign, deliver and receive all papers or documents in connection with and pursuant to the foregoing authority.”
The additional stake will be acquired from Seasia Logistics Philippines Inc. for an indicative price of P192 million.
FNI and Seasia will execute a deed of absolute sale of shares once the purchase price is fully paid.
With no regulatory approval needed, FNI expects the transaction to be completed by March 10.
“After the transaction, FNI will own 88 percent shareholding in MHC. This will give FNI more control on the operation of the port,” the listed firm said.
MHC, formerly Seasia Nectar Port Services Inc., operates the first purpose-built dry bulk terminal located within the FAB in Mariveles.
It handles shipments of coal, clinker, silica sand and cement raw materials, as well as steel, fertilizer and other dry bulk cargoes.
It was a joint venture between UK firm Nectar Group Ltd. (NGL) and Seasia with both 40 percent ownership interest, and Webcast Technologies Inc.owning the remaining 20 percent.
In December 2019, FNI acquired a 40.05-percent interest in MHC after it subscribed to 1.67 million common shares at P100 apiece, or P450 million.
Two years after, FNI raised its stake in MHC to 64.03 percent with the acquisition of 23.98 percent interest from NGL for P192 million.
The investment paved the way for the successful operations of its subsidiary, FNI Steel Corp. (FSC) which is putting up a steel processing plant near the terminal.
According to the company, the investment ensures that FSC has easy and steady access to port services since it relies heavily on the importation of raw materials especially during construction.
In June last year, FNI’s board cleared the construction and operationalization of FSC’s steel plant in Mariveles, Bataan with an approximate annual capacity of one million tons of steel rebar.
The facility is estimated to cost $50 million and will have an annual output of 60,000 tons of steel bars.
FNI is a diversified Filipino company with interests in nickel ore mining, logistics, cement and steel production, and port operations.