International Container Terminal Services Inc. said Wednesday it will acquire a majority stake in a multi-purpose terminal in Indonesia for $46.5 million.
The port terminal operator led by businessman Enrique Razon said it signed a conditional share subscription and purchase agreement with Indo Port Holding Pte Ltd. and Eastlog Holding Pte Ltd. to to take a majority ownership in PT East Java Development.
PT East Java Development is an Indonesian company that has 47 remaining years of concession rights to operate a multi-purpose terminal in Lamongan Regency, East Java.
“The purchase will increase ICTSI’s footprint within the growing APAC [Asia Pacific] region and provide further service offerings to its global and local customers,” ICTSI said.
“This transaction is expected to generate synergies and value-accretive returns for ICTSI’s shareholders,” it added.
ICTSI said the purchase price of $46.5 million would be paid in cash in multiple tranches over the next year.
The company earlier set aside about $330 million in capital expenditures this year to pay the concession extension upfront fees for Madagascar International Container Terminal, expansion of Manila International Container Terminal, Matadi Gateway Terminal, Victoria International Container Terminal and Contecon Manzanillo.
ICTSI reported a net income of $428.57 million in 2021, 321 percent higher than $101.76 million it earned in 2020.
The company said gross revenues from port operations climbed 24 percent in 2021 to $1.87 billion from $1.51 billion in 2020.