PSA clears last hurdle to secure HK berths
PSA International of Singapore yesterday secured a place on Hong Kong's busy waterfront after the last shareholder in Asia Container Terminals (ACT) declined to exercise a right to match part of PSA's $3 billion offer to NWS Holdings.
Dubai Ports International (DPI), the global investment arm of the state-owned Dubai Ports Authority, chose not to pre-empt PSA's bid by last night's deadline, effectively clearing the Singapore firm's stake in three berths at Kwai Chung.
'We are optimistic of the long-term future of Hong Kong port and confident that we are able to add value to the port scene,' PSA International chief executive Eddie Teh said.
'We look forward to working closely with our partners and the authorities to provide shipping line customers with high productivity and service levels.'
DPI had the right to match the PSA's offer for the 31.4 per cent in ACT held directly by NWS, a stake valued at a little more than $1.1 billion.
The final payment for that part of the PSA's overall $3 billion offer remained outstanding last night, according to NWS.
'The transaction will continue with PSA International because the other party did not exercise its pre-emptive right,' said NWS spokesman Kwan Chuk-fai.
Mr Kwan said he expected the full deal - which will give the PSA an effective 54 per cent of the two-berth ACT and 33.3 per cent in the firm which owns Container Terminal 3 - to be completed by the first week of next month.
However, as 22.6 percentage points of PSA's new stake in ACT would be indirectly held, DPI would remain in control of the company with 68.6 per cent of the voting rights, DPI said last night.
The deal brings to an end the flurry of bids and counter bids for Hong Kong port assets that began with the sale of CSX Corp's global port assets last year.
