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INTERNATIONAL Container Terminal
Services Inc. (ICTSI) said Friday that its first venture into China
got a boost after Beijing approved the company’s plan to operate
container terminals in the mainland.
In a
statement, ICTSI said that it has obtained regulatory approval from
the Chinese government to buy 60 percent of the Yantai Gangtong
Container Terminal Co. Ltd. (Gangtong Container Co.), which manages
the Yantai Gangtong Terminal in Shandong Province, China.
Unit ICTSI
(Hong Kong) Ltd. entered into a joint venture with Yantai Port Group
Co. Ltd. and SDIC Communications Co. for the project.
“The joint
venture agreement of the parties has, therefore, become effective.
The term of the joint venture is 30 years. The conversion of YCT
into a Sino-foreign joint venture enterprise under PRC law has also
been approved,” the ICTSI said.
ICTSI (Hong
Kong) purchased a 54-percent interest from the Yantai Port Group and
6 percent from SDIC, for a total of 60-percent shareholdings in YCT.
The company
explained that the Yantai Port Group and SDIC will each retain a
20-percent stake in YCT. ICTSI will have to pay 389.1 million
renminbi (approximately P2.437 billion) for the 60-percent stake.
It has paid
the first installment of 116.7 renminbi.
“ICTSI will
fund this acquisition with internally generated funds and from the
proceeds of the private placement and sale of not more than 300
million ICTSI shares by its subsidiary, ICTSI Warehousing Inc.,”
the Philippine company said.
YCT operates
38 and 39 of the Yantai Gangtong Terminal. It also owns four quay
cranes.
 --Darwin
G. Amojelar
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