California group acquires stake in ICTSI

MANILA, Philippines - California-based investment firm Capital Group Companies has acquired about 8.7 percent of the outstanding capital of Razon-led port operator International Container Terminal Services Inc. (ICTSI).

In a beneficial ownership report filed at the Philippine Stock Exchange, Capital Group said it acquired 169.34 million shares of ICTSI.

Based on ICTSI’s closing price of P68.5 yesterday, the purchase amounts to about P11.6 billion.

Founded in 1931, Capital Group is a privately-owned global investment management firm with around 7,000 associates in 23 offices worldwide.

It provides mutual fund investments through American Funds and Capital International funds; institutional investment services through Capital Guardian Trust Co. and Capital International affiliates, and investment management for high-net-worth individuals and families through Capital Group Private Client Services.

Meanwhile, ICTSI grew its first half net earnings 17 percent to $70.3 million, mainly driven by the modest growth in volume and revenues in all three geographic segments and lower financing charges.

Gross revenues from port operations amounted to $345 million, up eight percent from $319.1 million owing to higher storage revenues and ancillary services, favorable volume mix and tariff increases at key terminals.

ICTSI is a leading port management company involved in the operations of 24 maritime terminals and port projects 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.

Last month, ICTSI signed with Lekki Port LFTZ Enterprises a sub-concession agreement for the exclusive development and operation of the Lekki international container terminal in Tolaram Port in Lagos, Nigeria for a period of 21 years.

Targeted for completion by 2016,the Lekki port will have a 1,200-meter quay and an annual capacity of 2.5 million twenty-foot equivalent units, making it the largest single terminal in sub-Saharan Africa.

ICTSI also completed the acquisition of a port facility located in Jakarta’s Tanjung Priok area as well as stakes in major cargo ports in the Middle East and Nigeria in Africa.

The company has set a capital spending program of $550 million for 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.