ICTSI to buy 51% stake in DP World Yantai of China
Screengrab from www.ictsi.com
MANILA, Philippines — International Container Terminal Services Inc. (ICTSI), a global ports operator led by billionaire Enrique Razon Jr., is acquiring a controlling stake in the only foreign container terminal within the Zhifu Bay Port area in Yantai, China, according to a stock exchange filing Tuesday.
The move was part of broader steps by the Yantai Port operators to consolidate operations and improve scale by separating local and foreign container handling operations.
In the case of ICTSI, via wholly owned subsidiary ICTSI (Hong Kong) Ltd., the company will acquire a 51 percent stake in DP World Yantai Co. Ltd. (to be renamed Yantai International Container Terminals Ltd.)
ICTSI would also have to sell its 60 percent stake in Yantai Rising Dragon International Container Terminals Ltd. Yantai International Container will be the only foreign container terminal while Yantai Rising Dragon will be dedicated to local container services, the filing showed.
No amounts were provided in the filing while ICTSI vice president and treasurer Rafael Consing Jr. said in a text message that specific financial details would be provided after the two parties in the deal satisfy closing conditions.
Article continues after this advertisementICTSI said it was selling its 60 percent stake in Yantai Rising Dragon to Yantai Port Holdings Co. Ltd, which would also own 36.5 percent of Yantai International Container. The other major shareholder of Yantai International Container will be DP World China with a 12.5 percent stake, the filing showed.
ICTSI cited the basic requirements for ‘bonded operations’ within the Yantai bonded port zone in Shandong Province, China as a reason for the consolidation.
