MANILA, Philippines—International Container Terminal Services Inc. (ICTSI) is setting its sights on Greece, taking advantage of Athens’ debt woes that may force the government to sell key port assets at bargain prices.
ICTSI chairman Enrique Razon Jr. on Tuesday said the company had about $500 million in cash set aside for expansion overseas, but its main priority would be Greece.
“The Greek government is under a lot of pressure to sell off,” Razon said. The businessman’s statements were first reported over international news wires and were later confirmed by the company’s Manila office.
Razon said the company aimed to take advantage of Greece’s troubles, with the sale of key government assets being one of the quickest ways to stay solvent and avoid defaulting on its loans.
ICTSI is targeting about two ports in the European archipelago, which Razon said he hoped would be put on the auction block “sooner rather than later.”
The “fire sale,” as described by analysts, of key port assets such as the government’s 74-percent stake in Piraeus in Athens and a similar-sized holding in the country’s other main gateway port Thessaloniki has sparked protests in the debt-strapped Greece.
Astro del Castillo, managing director of local brokerage First Grade Holdings Inc., said opportunities to buy such key assets at low prices might never come again.
“Yes, the Greek economy is on the brink of collapse, but their economic infrastructure is still there. Now is the time to take advantage of these bargain prices,” Del Castillo said. “Moving forward, there’s nowhere to go but up for the Greek economy.”
Since the start of the year, ICTSI has been on a buying spree of ports abroad. Its recent ventures included the Port of Portland in the United States and facilities in Mexico, India and parts of Eastern Europe.
To fund the expansion, the company, ranked as one of the biggest port developers in the world, has been raising funds through the sale of common shares and other debt-like securities.