ICTSI acquires substantial stake in Pakistan firm
International Container Terminal Services Inc. has acquired a substantial stake in one of Pakistan’s largest cargo terminals as part of the group’s global expansion thrust.
In a statement, the firm of Enrique Razon Jr. said it had completed all government and other requirements, allowing it to acquire 35 percent of Karachi-based Pakistan International Container Terminal Ltd.
ICTSI Mauritius Ltd., a unit of ICTSI signed a share purchase agreement last March for the acquisition of up to 35 percent of PICT.
Pursuant to the deal, the ICTSI unit made a tender offer on the Karachi Stock Exchange to purchase PICT shares at 150 Pakistan rupees (P65) apiece.
Other requirements of the deal included clearance from relevant government agencies in Pakistan, issuance of consent from PICT’s lenders, and the fulfillment of certain pre-completion covenants by the selling shareholders.
The company also needed to determine if the warranties from the selling shareholders were correct in all material respects and compliant with Pakistan takeover laws.
“ICTSI was informed by ICTSI Mauritius today that all conditions precedent to the completion of the acquisition, as stipulated in the share purchase agreement, have been fulfilled,” the company yesterday said. “Thus, ICTSI Mauritius completed today its acquisition of 35 percent of the total issued capital of PICT.”
ICTSI previously considered buying as much as 55 percent of PICT.
At 55 percent, the purchase would cost ICTSI about $6.6 million.
For the fiscal year ending in June 2011, PICT handled a total of 669,806 TEUs (twenty-foot equivalent units), 11-percent up year on year.
Aside from its extensive domestic operations, ICTSI has also made a name as a leading port management company involved in the operations and development of 24 marine terminals and port projects in 17 countries.
It was among the first international terminal operators to expand globally, establishing a good track record in various economies privatizing port operations.
