A Philippine company has inked an agreement with a Japanese airport service provider for a multi-billion yen cross-border transaction that would boost each other’s ground- handling and aviation support capabilities.
MacroAsia Corp. said it is acquiring 30 percent of Japan’s Japan Airport Service Co. Ltd. (JASCO), a unit of Konoike Transport Co. Ltd., in exchange for 20 percent interest in the former’s ground-handling unit MacroAsia Airport Services Corp. (MasCorp).
MacroAsia is acquiring the JASCO stake for 1.82 billion yen, while Konoike Transport will be buying MacroAsia’s 20 percent stake for 2.34 billion yen. The two parties signed the agreement on Nov. 5, 2019.
“Through this partnership, the sustainable growth of MacroAsia in the next 10 years will be reinforced. Japan’s robust growth in local and international travelers will create tremendous demand on airport ground handlers and other aviation support service providers,” MacroAsia said.
“In fact, based on Japanese government targets by 2020, foreign travelers/tourists will reach 40 million and 60 million by 2030. These positive factors such as growth in inbound tourism, construction of additional runways and the marked increase in the number of flights operated by major airlines and LCCs (low-cost carriers) all points to a considerable increase in infrastructure development and demand stimulation at the national level,” it added.
Konoike Transport’s airport division operates in six airports: Narita, Haneda, Kansai, Fukuoka, Itami and Kobe.
MacroAsia said MasCorp will provide human capital in Konoike Transport’s operations, giving the latter “the advantage of being able to secure the needed human resources from the Philippines to support the expected growth in demand for passenger and ground handling services.”
“With this expansion in Japan, MasCorp will be able to generate additional revenues for processing and sending technical intern trainees in Japan and at the same time benefit from the management exchange program where the best practices in both countries can be adopted,” it said.
MacroAsia said the strategic investment of Konoike Transport in MasCorp will also be beneficial to the latter’s expansion of its ground handling businesses in the Philippines and in Japan.
“Likewise, MAC’s strategic investment in Konoike’s ground handling unit in Japan – JASCO, will create synergies and build capacities that will allow both units to grow further,” it said.
“Other opportunities that MacroAsia is looking into are possible joint venture initiatives covering outsourced medical services, temperature-controlled warehouses, warehousing and other logistics services,” it added.
Konoike Transport is one of the leading service contracting and logistics service provider in Japan. Founded in 1880, it has grown to 27 companies natively and operates in 12 countries: USA, Mexico, China, Philippines, Indonesia, Vietnam, Cambodia, Singapore, Thailand, Myanmar, Bangladesh and India.
Total workforce of the group is about 25,000 serving over 3,500 clients from 228 operating bases worldwide.
Konoike Transport is listed on the First Section of the Tokyo Stock Exchange since 2013. It maintains head offices in Tokyo and Osaka. For 2018, Konoike Transport generated total revenues of 294.16 billion yen and income stood at 10.98 billion yen.
The partnership is aligned with the UN Sustainable Development Goals, specifically SD Goal #8 for Decent Work and Economic Growth since Japan presents one of the best employment opportunities to foreigners, where a lot of Filipinos secure decent and respectable jobs, high salaries, with great living and working conditions and where labor rights are well protected.