Keppel Infrastructure Trust (KIT) and Metro Pacific Investments Corporation (MPIC) have agreed to sell their 100% stake in Philippine Coastal Storage & Pipeline Corporation (PCSPC) to affiliates of I Squared Capital for a total enterprise value of US$460 million ($598 million), including US$181 million of net debt. KIT and MPIC each have a 50% stake in PCSPC, having acquired it in early 2021.
On Oct 23, Razor Crest Storage Infrastructure Holdings Corporation, Coral Terminal Holdings Corp, Terminal PH Investments Pte. Ltd, KIT and MPIC entered into a sale and purchase agreement (SPA), where Razor Crest agreed to sell its entire stake in Hyperion Storage Holdings Corporation to Coral Terminal. Razor Crest is an indirect 50:50 jointly-controlled company of KIT and MPIC and holds all the shares in PCSPC indirectly. Terminal PH Investments is the parent entity of Coral Terminal. Both are affiliates of I Squared Capital, a global infrastructure investment manager.
According to KIT’s release, the transaction is in line with its long-term investment strategy to focus on lower carbon energy transition segments.
“As significant capital will be required to grow and scale up PCSPC, which would in turn further entrench KIT in the business, KIT’s trustee-manager took the opportunity to divest the asset,” adds KIT.
On a pro forma basis, the transaction was not expected to have a material impact on KIT’s distribution per unit (DPU) for FY2023, assuming it had been completed on Jan 1, 2023, as the DPU amount is determined by KIT’s manager’s board of directors.
As at 11.10am, units in KIT are trading 1 cent lower or 2.13% down at 46 cents.
