Filipino terminal operator International Container Terminal Services (ICTSI) has acquired Mexico-based port operator Terminal Marítima de Tuxpan (TMT) for USD54.5 million.
The acquisition is in line with the ICTSI’s policy of business expansion and increasing its global footprint, according to ICTSI’s filing to the Singapore Exchange (SGX).
“The rationale for the transaction is to continue to expand the business and diversify geographically, and to support, participate in, and benefit from, the positive economic development in Mexico,” said ICTSI in its statement to SGX.
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ICTSI is acquiring 100% stake in TMT with a total of 147,688 shares at USD369.02 per share. The investment is expected to increase ICTSI’s consolidated throughput and revenue and positively contribute to the financial performance of the company.
Previously, ICTSI’s revenue for the first quarter in 2015 increased by 19% year on year (y/y) to USD296.1 million and its net income increased 3% y/y to USD54 million for the first quarter that ended on 31 March 2015.
During the period, the company handled consolidated volume of 1,982,773 teu for the first quarter in 2015, 13% more than the 1,757,095 teu handled in the first quarter in 2014.
The increase in volume was mainly due to the improvement in international and domestic trade in most of the ICTSI’s terminals, new shipping lines and services, continuing volume ramp-up in the company’s terminal operations in Mexico and Honduras, favourable impact of terminal consolidation at Yantai, China, and the contribution of the ICTSI’s new terminal in Basra, Iraq, which began commercial operation in November 2014.