The International Container Terminal Services Incorporation (ICTSI) has closed a P10-billion deal to complete the acquisition of a firm based in Brazil. With this completion, the concession company will be able to operate its container terminal in the Rio de Janeiro Port. The company disclosed that the deal was made by ICTSI Americas B.V, its wholly owned subsidiary, inking the share purchase agreement with Boreal Empreendimentos e Participacoes S.A. The agreement states that ICTSI will acquire 100% of Libra Terminal Rio S.A. This is another good news for investors of ICTSI as the firm continues to expand globally. Let’s take a look at some of the important matters connected to this deal.
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It was enclosed in the deal that ICTSI will get 272,058,824 shares of Libra Rio at 2.72 Brazilian Reais per share, or equivalent to P37.09 in pesos. In total, this is around 740 million Brazilian Reais or P10.1 billion. The firm stated that the price was negotiated based on a cash-free, debt-free agreement and through a discounted cash flow method. Meaning, this is already the best deal both companies can get from the acquisition. ICTSI will pay the deal in cash upon closing. ICTSI keeps on expanding its business not only here in the Philippines but also abroad. If you are looking for a good company to invest in, you might want to consider this firm as an option.
The Libra Group wholly owns Boreal, under which is Libra Rio. Libra Rio owns the right to operate, develop, and manage Terminal de Conteineres 1 located in Rio de Janeiro in Brazil. ICTSI was able to win the deal during a public auction held on July 17 where Libra Rio was offered. After winning, the share purchase agreement was pushed through as part of the reorganization process of Libra Group. The process was conducted by the 2nd Special Lower Court for Business Restructuring and Insolvency in Sao Paulo, Brazil. The law states that ICTSI was able to own Libra Rio as an isolated operation unit. The subsidiary is free of any liabilities or contingencies.
The facilities of Libra Rio will be transferred late this year upon completion of all the conditions and requirements. Once ICTSI overtakes the terminal, it would be the second terminal to be operated by the Razon-led company in Brazil. The first one is the Suape Container Terminal in Suape Port. Some of the ports covered by the operation of the firm are Port of Guayaquil in Ecuador, Port of Manzanillo and Tuxpan in Mexico, and Port of La Plata in Argentina. By the end of this year’s first quarter, ICTSI was able to book an attributable net income of $72.4 million, 77% higher than the same period last year.