SINGAPORE : It is third time lucky for PSA International.
The port operator has confirmed that it is buying the Hong Kong
port assets of NWS Holdings, giving it a foothold in the world's
busiest container port.
PSA did not give any details, but reports say the deal is worth
HK$3 billion or about S$630 million.
PSA International has finally done it, after failing twice to get a
foothold in the world's busiest container port.
PSA's persistence finally bore fruit, when NWS Holdings agreed to
sell its port assets.
NWS is a unit of the Hong Kong property firm New World
Development.
Last November, PSA agreed to buy a stake in Asia Container
Terminals Holdings (ACT).
But that deal was blocked by existing shareholders which exercised
their pre-emptive rights - including NWS.
On Monday, a spokesman for NWS said the company could not resist
the offer made by PSA for its stakes in two container terminals at
Kwai Chung Port.
Under the deal, PSA will buy over NWS' 31.4 percent stake and
shareholder loans in Asia Container Terminals - and its 33.34
percent indirect stake in CSX World Wide Terminals Hong Kong.
NWS will book a profit of HK1.8 billion this year due to the stake
sale.
PSA - the world's second-largest port operator - has been looking
for investment opportunities in Hong Kong to increase its global
presence and gain access to China.
There are concerns that PSA might be paying too much for the
purchase, but the deal is still subject to shareholder
approval.
ACT's remaining shareholder, CSXWT Terminal 8, has one month from
February 4 to decide whether to exercise its pre-emptive right to
buy the shares and shareholder loans.
Analyst David Cohen from Action Economics Singapore said, "...as
much as anything, this suggests that NWS was playing hardball in
November when PSA bid for ACT was blocked. It highlights the
determination by PSA to extend its reach across the region,
particularly into the China market. They are understandably
optimistic about continuing growth prospects." - CNA