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April 15, 2019

ICTSI in talks with banks to buy Hanjin shipyard in Philippines

International Container Terminal Services (ICTSI) is negotiating with banks for a possible takeover of the assets of bankrupt Hanjin Heavy Industries and Construction Philippines (HHIC-Philippines).

International Container Terminal Services (ICTSI) is negotiating with banks for a possible takeover of the assets of bankrupt Hanjin Heavy Industries and Construction Philippines (HHIC-Philippines).

In early January, HHIC-Philippines filed for corporate rehabilitation and subsequently ICTSI showed interest in acquiring HHIC-Philippines’s Subic Bay facility.

On the sidelines of ICTSI stockholders’ meeting, its chairman and president Enrique Razon told the reporters: “We’re still making presentations to the banks – the banks own it now. We’re developing a master plan for Hanjin.”

If the deal materialises, ICTSI will buy the 300-hectare site of shipyard located in Subic and develop it into various multipurpose facilities such as ports, power and steel.

Negotiations pertaining to the takeover of the facility include approximately $412m in loans to Philippines banks and whether ICTSI will be able to convince any consortium partners to join the deal.

“If the deal materialises, ICTSI will buy the 300-hectare site of shipyard located in Subic and develop it into various multipurpose facilities.”

Dutch shipbuilder Damen Group and an American shipbuilder are among interested parties that have earlier completed due diligence in Hanjin, Nikkei Asian Review reported quoting Rosario Bernaldo, the receiver in charge of administering the corporate rehabilitation.

A spokesperson for Damen earlier told the publication that it was exploring options for the shipyard, including partnerships.

Since 2006, Hanjin had invested approximately $2.3bn in the area and had supplied 123 vessels by the end of last year.

The shipyard, which once employed more than 30,000 people during its peak of operations, shut down in February.

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