The Singapore listed Hutchison Port Holdings (HPH) Trust has acquired 100% of shares in the Hong Kong terminal operator, Asia Container Terminal Holdings Ltd (ACT Holdings), for around HK$750m (US$408m).
HPH Trust says that it made the move because it wants to invest in, develop, operate and manage deepwater container ports in the Guangdong Province, Hong Kong and Macau, one of the world’s largest trading hubs.
In addition to the shares, the Trust also payed around HK$750 million (US$96m) in cash to fund the full repayment of the outstanding debts owed to affiliates DPW and PSA.
ACT Holdings is the holding company of a group of companies that owns and operates Container Terminal 8 West, located at Kwai Chung, Hong Kong, under a lease from the Hong Kong Government for a term expiring in June 2047.
HPH says that the acquisition represents an excellent opportunity for the Trust to invest in, operate and manage deep-water container ports in the Pearl River Delta and fits with its strategy to “selectively pursue acquisition opportunities to provide unitholders with stable and regular distributions as well as long-term DPU growth.”
HPH Trust’s portfolio already consists of interests in deep-water container port assets located in Hong Kong and Shenzhen, the People’s Republic of China, and accompanying port ancillary services.
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