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International Container Terminal Services Inc. is acquiring a majority stake in an Indonesian multi-purpose terminal in Lamongan Regency, East Java
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ICTSI signed on July 27 a conditional share subscription and purchase agreement with Indo Port Holding Pte Ltd. and Eastlog Holding Pte Ltd. for the stake in PT East Java Development, owner of the concession rights to operate targeted terminal
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Under the deal, ICTSI will buy 1 million shares, or 66.7% of PT East Java’s total shares outstanding for US$46.5 million, to be paid in cash in multiple tranches over the next year
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ICTSI said the purchase will increase its footprint within the growing Asia Pacific region and provide further service offerings to its global and local customers
International Container Terminal Services, Inc. (ICTSI) is acquiring a majority stake in a multi-purpose terminal in Lamongan Regency, East Java, Indonesia.
The acquisition was announced by ICTSI in a regulatory disclosure to the Philippine Stock Exchange on Wednesday, July 27.
ICTSI said it signed on July 27 a conditional share subscription and purchase agreement with Indo Port Holding Pte Ltd. and Eastlog Holding Pte Ltd. to acquire their shareholdings that make up the majority stake in PT East Java Development, owner of the concession rights to operate a multi-purpose terminal in Lamongan Regency in East Java.
PT East Java’s concession has 47 years remaining in its duration.
ICTSI said it will acquire 1 million shares, or 66.7% of the total shares outstanding of PT East Java, at US$46.50 per share or a total of US$46.5 million, to be paid in cash in multiple tranches over the next year.
The port operator noted that the amount was negotiated and determined based on a discounted cash flow method.
It added that the usual conditions precedents to closing the transaction will be applicable.
The purchase will increase ICTSI’s footprint within the growing Asia Pacific region and provide further service offerings to its global and local customers, and is expected to generate synergies and value-accretive returns for its shareholders, the company said.
Currently, ICTSI’s presence in Indonesia includes two subsidiaries – PT PBM Olah Jasa Andal, which provides services to Tanjung Priok port in Jakarta, and PT Makassar Terminal Services in Makassar port in southern Sulawesi.
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