ICTSI unit gains control of Indon garment firm

MANILA, Philippines - Port operator International Container Terrminal Services Inc. (ICTSI) said its indirect wholly-owned subsidiary has acquired a controlling stake in listed garment manufacturing firm PT Karwell Indonesia for around $660 million.

ICTSI Far East Pte Ltd. has signed an agreement to acquire a total of 312.55 million shares, or 53.23 percent of the outstanding and issued shares of PT Karwell, at 74 Indonesian rupiahs apiece.

In addition, ICTSI Far East shall also purchase an additional 157.17 million PT Karwell shares, equivalent to 26.77 percent, from the Indonesian Stock Exchange at a price ranging from 75 to 77 rupiahs each.

ICTSI said the acquisition is intended to preserve the going concern of PT Karwell which requires the total restructuring of the company, change in its primary purpose and business from a garment and textile firm to an entity engaged in the development, construction and operation of terminals and maritime logistic infrastructure.

Upon completion of the deals, ICTSI Far East will own 469.72 million shares or 80 percent of PT Karwell.

ICTSI Far East shall undertake a mandatory tender offer for the remaining shares held by PT Karwell minority shareholders.

PT Karwell produces shirt, blazers, jackets, raincoats, skirts and trousers for the local and export markets like US, England and other European countries.

As of end-December 2011, ICTSI’s portfolio extended to 23 terminals in 17 countries with six ports in the Philippines, and one terminal each in Indonesia, Brunei, India, China, Japan, United States, Ecuador, Brazil, Poland, Georgia, Croatia, Syria and Madagascar. It also has ongoing port development projects in Mexico, Colombia and Argentina.

ICTSI has set a capital spending of $550 million this year, more than double what it spent in 2011.

 About $345 million of the capital budget will go to greenfield projects in Argentina, Mexico and Colombia.

 The balance will be used to partly fund the acquisition of a 35 percent stake in Pakistan International Container Terminal Ltd., equivalent to around $150 million.