PSA finally gets Hong Kong terminal foothold
Singapore-based global terminal operator PSA looks set to finally gain a foothold in the Hong Kong terminal business by acquiring assets from NWS Holdings Ltd., but at a hefty price.
Hong Kong-based NWS Holdings Ltd. said Monday it has agreed to sell its Hong Kong port assets to PSA International Pte Ltd. for HK$3 billion ($385 million).
As part of the agreement PSA will acquire NWS’ 31.4 percent interest, along with HK$265 million ($34 million) shareholder loans, in Asia Container Terminals Holdings Ltd. plus the entire issued share capital of Keen Sales Ltd.
Asia Container Terminals holds 100 percent interest in the operator of Hong Kong’s container terminal No. 8 West. Keen Sales holds a 33.34 percent interest in the operator of container terminal No. 3 at the Hong Kong port.
The transaction is expected to be completed by April 5. NWS estimate the total net gain of the sales at about HK$1.8 billion ($230 million).
Singapore state owned PSA has tried before to acquire Hong Kong port assets. At the end of last year ACT shareholders, NWS and CSX World Terminals, exercised pre-emptive rights to block an agreement PSA had with third ACT shareholder Sun Hung Kai Properties to buy its 57 percent share. The price of that agreement remained undisclosed although Reuters estimated it to be in the region of $333 million.