PSA takes 57 percent stake in Hong Kong's Asia Container Ter
sbst275
HONG KONG : Port operator PSA International has agreed to acquire a 57 percent stake in Hong Kong's Asia Container Terminal, or ACT, from developer Sun Hung Kai Properties.
No financial details were given, but the deal is reported to be worth US$333 million, with PSA assuming $77 million worth of debt.
Analysts say that puts the selling price at four times the estimated book value.
Three years ago, Asia Container Terminals was worth about US$159 million, so PSA may be paying a huge premium, going by the reported price.
But it indicates just how much PSA wants this strategic foothold in Hong Kong.
PSA has been expanding its international presence aggressively around Asia in recent years.
And now, it has finally landed a presence in Hong Kong, one of the world's busiest container ports.
The purchase comes less than two weeks after PSA lost a bidding battle with Sun Hung Kai Properties to buy Hongkong Land's 29 percent stake in ACT.
ACT is one of five operators in the Kwai Chung container hub, which handles the majority of Hong Kong's container traffic.
But still, it has yet to secure its first customer, despite having acquired two berths there.
Said Francis Lun, general manager at Fulbright Securities, "It's doubtful that with these kind of figures that PSA will be able to make a profit from Terminal 8 in the foreseeable future.
"But you also have to look at it another way: how much is a meaningful contributing stake in Terminal 8 worth? Because Hong Kong is one of the largest ports not only in Asia and China but the world, if PSA is to be a global player in the cargo handling container terminal business, it has to have a contributing stake in one of the key terminals."
ACT aside, PSA is also taking the lead in the race to buy US rail giant CSX Corp 17 percent stake in its global port network.
Reports say PSA is willing to shell out upwards of US$1 billion for its assets in Hong Kong, Germany and Venezuela. - CNA
sbst275
Looks like if they get CSX Terminal, it will be a dog fight with HPH
sbst275
CSX Terminals consist of
Hong Kong Terminal Busan Russia (Eastern) Germany
FireIce
i can read all these for myself in cna, sti, zaobao and watever other news sites
sbst275
Originally posted by FireIce:
i can read all these for myself in cna, sti, zaobao and watever other news sites
It is for those that hates ST (Now need to register)
sbst275
Seems that PSA is already in the lead on getting CSX Terminal