International Container Terminal Services Inc. (ICTSI) will acquire a majority stake in an Indonesian port as the operator expands its global footprint.
The Philippines-based firm signed a Conditional Share Subscription and Purchase Agreement with Indo Port Holding Pte Ltd. and Eastlog Holding Pte Ltd to acquire majority ownership in PT East Java Development – which has the concession rights, with 47 years remaining in its concession, to operate a multi-purpose terminal located in Lamongan Regency, East Java, Indonesia.
ICTSI is buying a a 66.7 per cent stake in a multipurpose port for $46.5 million, the company announced in a filing to Securities and Exchange Commission.
The signing was made on 27 July.
“The purchase will increase ICTSI’s footprint in the growing Asia Pacific region and provide further service offerings to its global and local customer,” ICTSI wrote.
ICTSI has operations in six continents. It operates 33 terminals across 20 countries.
In June the firm announced the Argentinian terminal operated by TecPlata S.A., a subsidiary of International Container Terminal Services (ICTSI), in cooperation with Vessel S.A. will launch a new weekly service between the La Plata Port and the Port of Montevideo in Uruguay.