INTERNATIONAL Container Terminal Services Inc. (ICTSI) is acquiring a company in Brazil that holds the rights to operate two port terminals for around $129 million.
“The acquisition will expand ICTSI’s presence in Brazil and strengthens its participation in the country’s strategically important agricultural trade,” ICTSI told the stock exchange on Friday,A stock purchase and sale agreement was signed a day earlier by subsidiary ICTSI Americas B.V. with Simpar S.A. and CS Brasil Holding e Locação S.A. for 100 percent of HSIM Participações e Holding Ltda. (HSIM).ICTSI will be purchasing 33,495,286 shares, equivalent to 100 percent of HSIM, at 19.41 reals apiece or for a total consideration of roughly 650 million reals.The company said its board approved the transaction on the same day.Payment will be made in cash subject to completion of “the usual conditions precedent applicable to transactions of this nature,” ICTSI said.Additional “earn-out payment” of 100 million reals is payable upon achieving certain milestones within 18 months following the closing of the transaction.The company said HSIM owned 100 percent of ATU12 Arrendatária Portuária SPE S.A. and ATU18 Arrendatária Portuária SPE S.A., which hold the rights to operate the ATU12 and ATU18 terminals, respectively.ATU12 and ATU18 are two adjacent terminals located at Aratu Port in Bahia, northeastern Brazil, and primarily handle agricultural product imports and exports.Both were said to have recently completed a comprehensive modernization and expansion program, positioning them to support the region’s growing agricultural trade and increasing cargo volumes.ICTSI shares on Friday jumped P12, or 1.25 percent, to close at P969 per share, outperforming the broader market, with the benchmark Philippine Stock Exchange index finishing marginally lower by 0.03 percent.
