HUTCHISON Port Holdings Trust has bought Asia Container Terminals, operator of Hong Kong's Container Terminal 8 West, for HK$3.9 billion
Hutchison buys Asia Container Terminals from DP World, Singapore's PSA
HUTCHISON Port Holdings Trust has bought Asia Container Terminals, operator of Hong Kong's Container Terminal 8 West, for HK$3.9 billion (US$503 million) from Dubai-based DP World and Singapore-PSA.
The debt-free purchase by Li Ka-shing's Hutchison Whampoa includes outstanding ACT debt of HK$750 million.
The deal will buy up the 45 per cent stake by PSA, gaining the Singapore-based operator $129 million and 55.2 per cent of DP World's stake at $279 million in the sale.
DP World said the sale will allow it to "value and recycle capital into new, fast growing opportunities in other markets", said its chairman Ahmed bin Sulayem.
The Dubai-based port operator is also selling off 75 per cent of Hong Kong's Kwai Chung Terminal berth 3 and in ATL Logistics Centre Hong Kong for $463 million to Goodman Hong Kong Logistics Fund. DP World will continue to manage the facilities.The deal will benefit HPH Trust's container terminals which number 14 of Hong Kong city's 24 deep-water berths and account for half the island's container throughput at 12.3 million TEU in 2012.
HPH Trust paid $407 per TEU based on 2012 container volume against a current enterprise value of more like $680 per TEU, 40 per cent less. The deal was financed by HK$4 billion credit facility from an unnamed bank.
A Hong Kong-based analyst, according to Lloyd's Loading List, the purchase will prove "great bargaining power" to shipowners and shippers despite the terminal seeing some decline in volumes over the last few years in cargo overflows business.
