INTERNATIONAL Container Terminal Services Inc. (ICTSI) on Monday said that it had sold its 51-percent equity interest in Yantai International Container Terminal Ltd. (YICTL) in China for RMB773.2 million or about P6.75 billion.
The company told the Philippine Stock Exchange that an equity interest transfer agreement was signed with Yantai Port Holdings Co. Ltd., through wholly owned subsidiary ICTSI (Hong Kong) Ltd., for 384,540,000 shares at RMB2.01 apiece.
“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,” the based global port operator said.
The Yantai terminal in Shandong is a joint venture between ICTSI Hong Kong (51 percent), Yantai Port Holdings (36.5 percent) and DP World China (Yantai) Ltd. (12.5 percent).
ICTSI said DP World had also entered into an equity interest transfer agreement to sell its entire stake to Yantai Port Holdings for an undisclosed amount, which would give the latter full control over the terminal upon completion of the transaction.
With the divestment of the Yantai subsidiary, ICTSI said it would now be able to rationalize its strategy “and redirect its resources to its other existing projects and those in its pipeline.”
ICTSI shares on Monday shed P2.00, or 0.29 percent, to close at P698.00 apiece amid a 1.9-percent drop for the benchmark PSE index.
