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Abbotsford Holdings Inc., a wholly owned unit of International Container Terminal Services Inc., is divesting out of Hijo International Port Services Inc. (HIPSI) by selling its shares to Hijo Resources Corp.
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Abbotsford divested its shares because the expected market for HIPSI did not materialize
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HIPSI operates Hijo International Port, a private commercial port in Barangay Madaum, Tagum, Davao del Norte
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Abbotsford agreed to sell 162,500 shares, or 65% of HIPSI’s capital stock, for P325 million
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HIPSI is a joint venture between ICTSI and Hijo Resources
International Container Terminal Services Inc.’s (ICTSI) wholly owned subsidiary, Abbotsford Holdings, Inc., is selling its shares in Hijo International Port Services Inc. (HIPSI) to Hijo Resources Corp for P325 million.
ICTSI said Abbotsford divested its shares because the expected market for HIPSI did not materialize.
HIPSI operates Hijo International Port, a private commercial port in Barangay Madaum, Tagum, Davao del Norte in the Gulf of Davao. The port, which complements Hijo’s agricultural businesses, is located strategically to connect Mindanao to major Asian markets. As of 2021, ICTSI said the existing port sits within a reclaimed land of about
10.3 hectares, has two berths at 120 and 150 meters long, and handles break-bulk cargo.
ICTSI earlier said it envisions Hijo International Port as its second-biggest container terminal in the Philippines, next only to its flagship Manila International Container Terminal.
Abbotsford confirmed on September 13 that it received an acceptable bank guarantee to settle the balance payment under the share purchase agreement (SPA) it had entered into with Hijo Resources, ICTSI said in a regulatory disclosure.
Under the SPA, Abbotsford sold to Hijo Resources 162,500 shares or 65% of HIPSI for P325 million. Hijo made an initial payment of P95 million and agreed to settle the balance in multiple tranches over the next eight quarters, supported by a bank guarantee.
After the sale, Abbotsford will no longer be a shareholder of HIPSI, a joint venture company between ICTSI and Hijo Resources. Abbotsford in 2012 acquired subscription rights to 40 million common shares in HIPSI, increasing its share ownership to 65%.
READ: ICTSI subsidiary gains control of Davao terminal
Hijo Resources is a diversified group involved in leisure and tourism, agribusiness, property development and port operations. Established in 1959, it is one of the pioneers in cultivating and exporting Cavendish bananas to Japan.
