Home » Ports/Terminals » Mitsui & Co gives ICTSI competition on Singapore port operator bid

INTERNATIONAL Container Terminal Services, Inc (ICTSI) may need to up its bid if it wants to acquire a majority stake in Singapore-based port operator Portek International Limited.

This after Japanese firm Mitsui & Co Ltd last week offered to buy Portek shares eyed by ICTSI at 17% more the ICTSI offer, or S$1.40 ($1.14) per share compared to ICTSI’s S$1.20 per share offer.

In a disclosure to the Singapore Exchange, Mitsui & Co said its offer represents a premium of 97.2%.

The estimated total cost of the deal will be up to $221 million, Mitsui said. Portek reported revenues of $125.63 million and a net profit of $14.728 million on a consolidated basis in fiscal year 2010, which ended June 30, 2010.

Mitsui said it has secured agreements from Portek founders to sell about 51.3% of its outstanding shares. Mitsui said it doesn’t intend to keep Portek’s listing on the Singapore exchange if the offer is successful.

Mitsui & Co is one of the world’s most diversified comprehensive trading, investment, and service companies. Headquartered in Tokyo, it maintains a global network of 155 offices in 67 countries, as well as nearly 450 subsidiaries and associated companies worldwide.

According to the firm, the acquisition of Portek will provide an opportunity for Mitsui’s Transportation Logistics Business Unit as it seeks to develop an effective logistics infrastructure and logistics network mainly in emerging countries, including Asia, Central America, South America and Africa.

ICTSI said it will study further the best available option for the Portek offer.

It may be recalled that on June 1, ICTSI subsidiary ICTSI Far East announced a voluntary conditional cash offer to acquire all issued and paid-up ordinary shares in Portek other than those already owned, controlled or agreed to be acquired by ICTSI and its concert parties.

In acquiring Portek, ICTSI’s strategy is to expand its network of port concessions to add to its network of 22 port terminals in 17 countries.

Portek operates and manages seven medium-sized container and multi-purpose terminals in Indonesia, Algeria, Malta and Gabon, and a dry port in Rwanda.

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