INTERNATIONAL Container Terminal Services Inc. (ICTSI) has signed a share-purchase agreement with Boreal Empreendimentos e Participações SA for the acquisition of Libra Terminal Rio SA, the concessionaire of a port in Brazil.
In a filing with the stock exchange, the Filipino port operator said its wholly owned subsidiary ICTSI Americas BV will soon hold the concession rights to operate, manage and develop the container terminal Terminal de Contêineres 1 after the full acquisition of Libra and other minor conditions.
The share-purchase agreement involves the acquisition of 85.11 million secondary shares and 186.94 million new shares, amounting to roughly P10 billion.
ICTSI won the public auction for Libra, which previously filed for bankruptcy.
“Under Brazilian bankruptcy law, ICTSI acquires Libra Rio as an isolated operation unit, free and clear of any liabilities or contingencies of any other entities of Libra Group,” the disclosure read.
The concession of Terminal de Contêineres 1 commenced in 1998 and was extended in 2011 until 2048. It is located in Rio de Janeiro City.
“ICTSI will assume the operational, development and other responsibilities under the current concession contract,” the filing read.
The transfer of the assets to ICTSI is expected to take place late 2019, once all conditions precedent and all required regulatory approvals have been obtained.
Equipped with five Ship-to-Shore Gantry Cranes and an extensive range of yard handling equipment including more than 16 Rubber-Tired-Gantry Cranes, the terminal has a capacity of 530,000 twenty-foot equivalent units. It had a throughput of 135,000 TEUs in 2018.
Currently, it has a total land area of 18.8 hectares and 715 meters of quay wall, with a design water depth of up to 16 meters, and thus, the capability to receive global shipping lines’ largest container vessels.
Aside from Terminal de Contêineres 1, ICTSI also operates the Suape Container Terminal in Pernambuco, Brazil.