International Container Terminal Services Inc. said Monday wholly-owned subsidiary ICTSI Americas B.V. acquired 100-percent of the shares of concession holder of a container terminal in Rio de Janeiro City in Brazil for P10 billion.
ICTSI said in a disclosure to the stock exchange it signed a share purchase agreement with Boreal Empreendimentos e Participações S.A. to acquire 100 percent of the shares of Libra Terminal Rio S.A., which holds the concession rights to operate, manage and develop the container terminal Terminal de Contêineres 1 in Rio de Janeiro.
Boreal is a Brazilian wholly-owned subsidiary of the privately-owned Libra Group (Brazil), which is under Judicial Reorganization.
ICTSI acquired 85,115,479 secondary shares and about 186,943,345 of new shares at BRL R$2.72 or for a total of P10.08 billion.
The share purchase agreement was executed after a public auction of Libra Rio on July 17, 2019 and won by ICTSI, required as a part of Libra Group´s Judicial Reorganization process led by the 2nd Special Lower Court for Business Restructuring and Insolvency in Sao Paulo, Brazil.
“The transaction will expand ICTSI’s footprint in the Brazilian container terminal market and is expected to generate value-accretive returns for ICTSI’s shareholders,” the company said.
The concession of Terminal de Contêineres 1 (T1Rio) commenced in 1998 and was extended in 2011 until 2048.
ICTSI said it would assume the operational, development and other responsibilities under the current concession contract.
“Transfer of the facilities to ICTSI management is expected to take place late 2019, once all conditions precedent and all required regulatory approvals have been obtained,” ICTSI said.
T1Rio had a throughput of 135,000 TEUs (twenty-foot equivalent units) in 2018. It has a capacity of more than 530,000 TEUs which could be expanded further.
T1Rio has state-of-the-art container terminal assets, including five ship-to-shore gantry cranes and an extensive range of yard handling equipment including more than 16 rubber-tired-gantry cranes.
It has a total land area of 18.8 hectares and 715 meters of quay wall, with a design water depth of up to 16 meters and thus the capability to receive global shipping lines’ largest container vessels.
ICTSI in June won a 25-year contract to develop, operate and maintain the multi-purpose terminal of the Port of Kribi in Cameroon.
The Port of Kribi is a newly-built port with a deep draft. The terminal consists of 265 meters of berth and 10 hectares of yard.