Manila-based International Container Terminal Services Inc. (ICTSI) has dropped its bid to acquire one of Singapore’s major port developers, conceding to Japan’s Mitsui & Co. Ltd., which made a better offer for the company.
In a disclosure on Monday, ICTSI said it had withdrawn its voluntary conditional cash offer to buy shares of Portek International Ltd.
“(ICTSI) notes that Nomura Singapore Ltd., for and on behalf of Mitsui, has announced on 28 July 2011 that Mitsui’s voluntary cash offer for all shares in the company … has been declared unconditional,” ICTSI said in a statement.
ICTSI’s original offer was to buy Portek shares for 1.21 Singapore dollars each, or a total of $171 million. However, Mitsui made a better bid, offering 1.40 Singapore dollars per share last month. Portek operates seven ports in Asia and Africa.
ICTSI said it intends to sell its shares in Portek to the Japanese company.
Portek, which operates and manages ports in Indonesia, Algeria, Malta, Gabon and Rwanda, would have been a valuable acquisition for ICTSI, which has so far focused on buying into single port developments at a time.
Its recent ventures include the Port of Portland in the United States and facilities in Mexico, India and parts of Eastern Europe.
In 2011, ICTSI plans to nearly triple its capital spending to $356 million from $125 million in 2010, skewed mainly for the development of new facilities in Latin America.
To fund this expansion, the company, led by businessman Enrique K. Razon Jr., has been raising funds through the sale of common shares and other debt-like securities.
In the Philippines, ICTSI operates the Manila International Container Terminal, Bauan Terminal in Batangas, Makar Wharf in General Santos, Sasa Wharf in Davao, New Container Terminal (NCT) 1 in Subic, and Mindanao Container Terminal in Misamis Oriental.