SINGAPORE: Singapore's port operator PSA International has bought NWS Holdings' port assets in Hong Kong, giving it a foothold in the world's biggest container port.
"PSA International Pte Ltd confirms that it has agreed to buy NWS Holdings Limited's Hong Kong port assets," said a PSA corporate spokesperson, without giving details.
Earlier Monday, NWS Holdings said it has agreed to sell its port assets in Hong Kong to PSA International for HK$3b (US$384.6m).
NWS, a unit of New World Development, said it would sell its entire 31.4 percent stake and shareholder loans in Asia Container Terminals (ACT) Holdings to PSA International for HK$1.9b.
It would also sell its 33.34 percent indirect stake in CSX World Wide Terminals Hong Kong to PSA International for HK$1.1b.
The HK$3b deal would allow PSA International to grab a slice of Hong Kong's container traffic business after its earlier offer for a 57% stake in ACT in November was thwarted last month by existing shareholders, including NWS Holdings. - CNA
NWS Holdings is a service company in HK that mainly does bus services, ferry services and property....
This sale marks the exit of them from port biz
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