International Container Terminal Services Inc (ICTSI) has offloaded its stake in Japan’s Naha Port, the Filipino terminal operator said in a stock market disclosure.
“ICTSI sold its 60% share in Naha International Container Terminal Inc (NICTI) in Naha in Japan, back to NICTI as treasury shares,” the statement said.
The stake is valued at JPY105.3 billion (USD12.61 million).
NICTI is the authorised private operator of the Naha International Container Terminal in Okinawa.
The 10-year lease agreement of NICTI granted by Naha Port Authority over the Naha International Container Terminal (NICT) is set to expire at the end of this year, with renewal negotiations due to start soon.
However, ICTSI is “no longer interested” in participating in those negotiations, the statement said.
A deed of sale of shares was consummated on the evening of 27 April between ICTSI and NICTI for the purchase of ICTSI’s shares into treasury, it added.
ICTSI said the sale would have very little impact on their business as it is a very small part of it.
ICTSI bought the stake in 2006, envisioning Naha as a hub port to facilitate trade between China and Japan’s southern ports. However, Japanese ports have not been able to attract as much cargo due to South Korean ports’ aggressive expansion.