Manila-based port operator International Container Terminal Services, Inc (ICTSI) will purchase additional shares in a Pakistani container terminal.
At the sidelines of last week’s ICTSI stockholders’ meeting, chairman Enrique Razon said the company is looking at increasing its share in Pakistan International Container Terminal Limited (PICT) to 51% from the original 35%.
“The cost of acquiring 51% of the terminal is about $100 to $150 million,” Razon said.
“We are also looking at further expanding the terminal as it is almost full.”
ICTSI through subsidiary ICTSI Mauritius Limited formally signed a share purchase agreement for PICT on March 12. Based on that agreement, ICTSI Mauritius will offer to purchase 35% of PICT shares at a minimum offer price to be determined in accordance with Pakistan’s takeover laws.
The transaction period is expected to be concluded within 180 business days.
PICT is a company listed in the Karachi Stock Exchange. A container cargo terminal located at the Karachi Port in Pakistan, the facility has a maximum handling capacity of 750,000 twenty-foot equivalent units. Last year, it handled 669,806 TEUs, 11% higher than the volume registered a year earlier.
ICTSI has been busy scouring the international market for takeover or joint ventures to expand its port portfolio. Before PICT, ICTSI recently inked an agreement to manage and operate the Lekki port in Nigeria.
The company is also setting its sights on terminals in Africa, the Middle East, Latin America and in Asia.
ICTSI has set aside $550 million for capital expenditures this year.
Photo from http://www.pict.com.pk/
