ICTSI sells 51% China terminal stake
The move follows two decades of ICTSI’s operations in Yantai and aligns with its long-term direction of prioritizing concession agreements where it can directly influence development and commercial activities.
Daily TribuneThe move follows two decades of ICTSI’s operations in Yantai and aligns with its long-term direction of prioritizing concession agreements where it can directly influence development and commercial activities.
Port operator International Container Terminal Services Inc. (ICTSI) has signed an Equity Interest Transfer Agreement, divesting its majority stake in a China-based terminal, marking a strategic shift toward assets where it retains stronger operational control.
In a disclosure, ICTSI said its wholly owned subsidiary, ICTSI (Hong Kong) Ltd., has agreed to sell its 51 percent equity interest in Yantai International Container Terminal Ltd. (YICTL) to Yantai Port Holdings Company Limited.
The transaction covers 384.54 million shares priced at RMB2.01 per share, with a total consideration of about RMB773.21 million, based on an independent valuation.
Two decades of operation in Yantai
The company said the move follows two decades of operations in Yantai and aligns with its long-term direction of prioritizing concession agreements where it can directly influence development and commercial activities.
“After a successful 20 years in Yantai, ICTSI deems the sale of YICTL in keeping with the ICTSI Group’s long-term strategy of focusing on concession contracts where ICTSI has control over critical aspects of the business, particularly with regards to long-term development and commercial activities, among others,” the company said.
Redirection of resources to other projects
ICTSI added that the divestment will allow it to “rationalize our strategy and redirect its resources to its other existing projects and those in its pipeline.”
YICTL operates a port terminal in Shandong Province, China and is currently a joint venture among ICTSI, Yantai Port Holdings, and DP World China (Yantai) Limited. Upon completion of the transaction, Yantai Port Holdings will take full ownership of the terminal.
The company said the sale is not expected to have a material impact on its business, financial condition, or operations.