Razon-led International Container Terminals Services Inc. gave up P325 million worth of stakes in the Hijo International Port Services Inc. after failing to meet market expectations from the Davao-based business.
In a disclosure to the stock exchange on Tuesday, the ICTSI said its subsidiary, Abbotsford Holdings Inc., received an "acceptable bank guarantee" covering the balance payment under the share purchase agreement it signed with Hijo Resources Corp.
Abbotsford Holdings held 162,500 shares or 65 percent of HIPSI, a private commercial port in Barangay Madaum, Tagum, Davao del Norte. After the sale, it will no longer be a shareholder in the business.
The company said the initial payment was set at P95 million while the balance would be paid in multiple tranches over the next eight quarters.
During the first half, ICTSI booked $294.5 million net income, higher than $196.7 million it earned a year ago due to a 20 percent increase in revenues.
