ICTSI, led by Razon, has announced its plan to invest $46.5 million to acquire a controlling interest in a multipurpose port operating company based in East Java, Indonesia. This move follows the signing of a conditional share subscription and purchase agreement between ICTSI and Indo Port Holding Pte, according to a statement the company released to the Philippine Stock Exchange. Following the agreement, ICTSI will hold a significant stake in PT East Java Development, which has the concession to operate a multifunctional terminal in the Lamongan Regency of East Java. The concession agreement remains valid for the next 47 years.
Cashflow forecast for the terminal in light of the COVID-19 pandemic. The $46.5 million investment will give ICTSI a controlling interest of 66.7% in PT East Java Development, which holds the concession to operate a multifunctional port in East Java’s Lamongan Regency. The shares will be acquired at a price of $46.5 per share.
The payment for the purchase price will be made in several cash installments until 2023. Through this acquisition, ICTSI aims to enhance its footprint in the growing Asia-Pacific region and expand its service offerings to domestic and international customers. As a global port operator with operations across six continents, ICTSI was recently recognized as the world’s largest independent port operator by marine expert Drewry. Furthermore, it was ranked as the eighth-best global terminal operator (GTO) globally.
According to Drewry, ICTSI and the large logistics firm Hamburger Hafen und Logistik AG have the highest equity levels across their entire companies. GTOs, including ICTSI, were responsible for over two-thirds of the world’s port volume during the peak of the pandemic in 2020, as per available records.
Despite the ongoing economic crisis due to Russia’s invasion of Ukraine, ICTSI’s chairman, Enrique Razon Jr., had announced that the company would continue with its expansion initiatives.
