ICTSI buying Indonesian port firm
Razon-led International Container Terminal Services Inc. (ICTSI) is acquiring a majority stake in an Indonesian multipurpose terminal operator for $46.5 million as it seeks to increase its presence in the Asia-Pacific region.
In a disclosure on Wednesday, the global port operator announced that it had inked a conditional share subscription and purchase agreement with Indo Port Holding Pte. Ltd. and Eastlog Holding Pte. Ltd. to buy 66.7-percent ownership in PT East Java Development.
PT East Java holds the rights, with 47 years remaining in its concession, to operate a terminal in Lamongan Regency, East Java, Indonesia.
ICTSI is set to acquire 1 million shares at $46.5 apiece. The transaction will be paid in multiple tranches over the next year.
“The purchase will increase ICTSI’s footprint within the growing [Asia-Pacific] region and provide further service offerings to its global and local customers,” the listed company said.
ICTSI has operations in six continents. It operates 33 terminals across 20 countries.
Independent maritime research and consulting firm Drewry recently recognized ICTSI as one of the top global terminal operators for handling 10.1 million twenty-foot equivalent units (TEU) in 2020.
Its consolidated throughput increased by 10 percent to 11.1 million TEUs in 2021 following the easing of mobility restrictions and more trading activities, ICTSI reported.
In the first quarter, the port operator’s consolidated volume climbed by 5 percent to 2.83 million TEUs from 2.71 million TEUs a year ago.
It has set aside $330 million in capital expenditures for its expansion plans this year.
