Corporate News

Razon’s ICTSI to bid for Greece’s 2nd largest port

Posted on March 24, 2017

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) on Thursday confirmed it will make a bid for a majority stake in Greece’s Thessaloniki Port on Friday.

The Philippine Stock Exchange and port operator International Container Terminal Services, Inc. (ICTSI) jointly led a special bell ringing ceremony to celebrate ICTSI’s 25th listing anniversary on Thursday. -- PSE
“I can confirm we are participating in the process,” ICTSI Senior Vice-President and Regional Head of Asia Pacific Christian R. Gonzalez told BusinessWorld in a text message.

Reuters quoted the port’s chairman Konstantinos Mellios as saying ICTSI, Dubai-based P&O Steam Navigation Company (DP World), Japan’s Mitsui & Co. and German private equity Deutsche Invest Equity Partners had all completed due diligence and are expected to make a bid for the Greek port.

The sale of a 67% stake in Greece’s second-largest port, which was launched in 2014, has been beset by delays and political resistance.

“Those four are still interested as we speak, there is information that all four will submit binding bids on Friday,” Mr. Mellios said, adding that Deutsche Invest had teamed up with French container shipping company CMA CGM.

Bids will be submitted by 1900 GMT to financial adviser Morgan Stanley and Greece’s privatization agency would open the offers by April 7 at the latest, he said.

Thessaloniki port workers walked off the job for three hours on Wednesday to protest against the sale but Mr. Mellios said it would not affect operations.

Greece’s port workers union were expected to sign a new two-year labor contract with the port’s management on Thursday, Mr. Mellios said, giving them time to negotiate with the winning bidder, which will also operate the port for 40 years.

Thessaloniki Port has a market value of $211 million and had a throughput of 344,277 20-foot equivalent units (TEUs) last year.

ICTSI budgeted a $240-million capital expenditure this year mainly to fund its expansion program.

Shares in ICTSI, which operates 30 terminals in 20 countries, closed P1.50 or 1.75% higher at P87 apiece on the Philippine Stock Exchange on Thursday. -- Reuters with Imee Charlee C. Delavin