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International Container Terminal Services Inc. is exiting its port venture in China after 20 years
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Through its wholly owned subsidiary ICTSI (Hong Kong), ICTSI signed an equity transfer agreement with Yantai Port Holdings related to the sale of its 51% majority stake in Yantai International Container Terminal Ltd
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Under the deal, ICTSI will sell 384.54 million shares at RMB2.01 per share
International Container Terminal Services, Inc. (ICTSI) is selling its controlling share in Yantai International Container Terminal Ltd (YICTL), exiting its port venture in China after 20 years, ICTSI said in a disclosure.
Through its wholly owned subsidiary ICTSI (Hong Kong) Limited, ICTSI on March 23 signed an equity transfer agreement with Yantai Port Holdings Company Limited related to the sale of its 51% majority stake in YICTL, ICTSI’s subsidiary in Yantai, China.
YICTL primarily handles containerized cargo but also It handles ro-ro cargo, bulk and break bulk cargo.
Under the deal, ICTSI will sell 384.54 million shares at RMB2.01 per share.
The remaining equity in YICTL is held by Yantai Port Holdings (36.5%) and DP World China (Yantai) Limited (12.5%).
“After a successful 20 years in Yantai, ICTSI deems the sale of YICTL in keeping with the ICTSI Group’s long-term strategy of focusing on concession contracts where ICTSI has control over critical aspects of the business, particularly with regards to long-term development and commercial activities, among others,” ICTSI said in its disclosure.
The sale allows ICTSI to “rationalize… strategy and redirect its resources to its other existing projects and those in its pipeline,” the company added.
Yantai is located on the northeast coast of Shandong Province in Eastern China, bordering Yellow Sea and Bohai Bay.
In 2014, Yantai Port Holdings and ICTSI purchased 51% of DP World Yantai Co. Ltd. which was later renamed as YICTL.
