ICTSI offers to buy Singapore operator, its first multi-port bid

By Coco Alcuaz, ANC

Posted at Jun 01 2011 12:51 PM | Updated as of Jun 01 2011 08:51 PM

MANILA, Philippines - International Container Terminal Services Inc. (ICTSI), the port operator controlled by billionaire Enrique Razon, has offered to buy Singapore-based Portek International Limited, which operates seven ports in Asia and Africa, for at least S$90 million.

If completed, it will be ICTSI’s first acquisition of a multi-port operation.

ICTSI offered S$1.20 per share for the company, an 89% premium over Portek’s 3-month average price, according to a disclosure to the stock exchange. The offer is conditional on receiving acceptances equivalent to more than 50% of Portek, which has 150.1 million shares, according to its website.

The premium exceeds the average paid in Singapore last year, according to a presentation posted on Portek’s website. ICTSI said trading in the shares has been low and it does not have "consistent" coverage by stock analysts.

In an interview from Singapore, Vice President Rafael Consing said Portek’s controlling shareholders, who hold about 42%, have not committed to sell any part of their stake and there is no agreement regarding its top executives.

Still, he said ICTSI has had a "long-standing" customer relationship with Portek, which provides it engineering and maintenance services. "We do not foresee making material changes to the operations," he said.

Portek had revenue of $125.6 million last year, compared with $561.7 million for ICTSI.