ICTSI America has bought Libra Terminal Rio (Libra Rio) from Boreal Empreendimentos e Participacoes in a PHP10bn ($195.4m) deal.
Under the agreement, the International Container Terminal Services (ICTSI) subsidiary will acquire more than 272 million shares, comprising 85 million secondary shares and over 186 million new shares, representing 100% ownership of Libra Rio.
Boreal operates as a wholly owned subsidiary of the privately owned Libra Group, which has been placed under judicial reorganisation.
In accordance with Brazil’s bankruptcy laws, ICTSI has acquired Libra Rio as an isolated unit, making it free from any liabilities of any other Libra Group entities.
Libra Rio owns the concession rights for the operations, management and development of the container facility Terminal de Contêineres 1 (T1Rio) in the port of Rio de Janeiro, Brazil.
After the transaction is completed, ICTSI will assume the operational and development responsibilities of the terminal as well as other requirements of the current concession contract.
The concession of T1Rio began in 1998. In 2011, it was extended until 2048.
In a statement, ICTSI Americas said: “The transaction will expand ICTSI’s footprint in the Brazilian container terminal market and is expected to generate value-accretive returns for ICTSI’s shareholders.”
After securing all required regulatory approvals and fulfilling the conditions, transfer of the facilities to ICTSI management is scheduled for completion later this year.
T1Rio had an output of 135,000 TEUs last year. The terminal has a capacity of more than 530,000 TEU with the ability to expand further.
T1Rio has five ship-to-shore gantry cranes and various yard handling equipment, including more than 16 rubber-tired-gantry cranes.
The terminal occupies a land area of 18.8ha and has 715m of quay wall, with a design water depth down to 16m. It is also capable of receiving large container vessels of global shipping lines.
T1Rio will be ICTSI’s second facility of its kind in Brazil, where the company also manages the Suape Container Terminal.