Global port operator to take over PICT

Philippine’s port manager to invest $95m for 55% stake in PICT.

International Container Terminal Services Inc (ICTSI) – Philippine’s leading port management company – expects to invest about $95 million to acquire up to 55% of Pakistan International Container Terminal (PICT), a container cargo terminal operator at the Karachi Port, according to the Philippine Daily Inquirer.

ICTSI launched at the Karachi Stock Exchange (KSE) on Friday a tender offer to acquire all publicly listed shares of PICT at a price of Rs150 a share. The tender offer will expire on October 10 in Pakistan unless extended, ICTSI disclosed to the Philippine Stock Exchange.

In an interview, ICTSI Treasurer Rafael Consing Jr said that the group was expecting to gain control of 55% of PICT after the tender offer. A 35% block had already been committed to

the ICTSI by the existing majority shareholder in a deal signed in March but with the tender offer, ICTSI could increase its interest to as much as 55%.

While the tender offer would cover all shares of PICT, Consing said ICTSI’s joint-venture partner—a local group named Premier Mercantile Services—would keep a 40% stake. This would leave PICT with an assumed public float of 5% on the KSE.

“Assuming we are able to buy a total of 55% of PICT’s capital stock, we expect to invest approximately $95 million,” Consing said.

Published in The Express Tribune, August 14th, 2012.
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