[250413.EN.SEA] MSC To Sell 35pc of Terminal Unit To Global Infrastructure Partners

GENEVA's Mediterranean Shipping Co (MSC) has reached agreement with Global Infrastructure Partners (GIP) and a group of its LP co-Investors to sell 35 per cent of its Terminal Investment Limited (TIL) for US$1.9 billion, including certain payments contingent on TIL's future performance.

Deal closing is expected to take place in the middle of the year and is subject to obtaining the relevant approvals.

TIL has, or is in the process of acquiring, controlling or joint-controlling interests in 30 container terminals serving most of the world's major trade routes located in North and South America, Europe, Africa, the Middle East and Asia, said the MSC statement.

"TIL has grown rapidly over the last decade and is now the world's sixth largest container terminal operator. TIL's growth will continue to benefit from its relationship with MSC which is the world's second largest container shipping company," said the company statement.

"The new strategic partnership between MSC and LP Co-Investors-GIP will provide a strong foundation to support the next phase of TIL's growth, including further acquisitions and investments. GIP will play an active role with Alistair Baillie joining TIL as president," said the statement.

Said MSC president Diego Aponte: "Through this partnership we are reinforcing our terminal division, which will enable us to capitalise on future opportunities and growth. This will complement MSC's strategy to maintain a leading position in the industry."

Said GIP chairman and managing partner Adebayo Ogunlesi: "This is in line with our strategy of developing best-in-class joint ventures with industry leaders. We expect to work closely with MSC in growing and improving this high quality portfolio of container terminal assets."

GIP is an independent infrastructure investment fund with US$15 billion under management. GIP invests worldwide in infrastructure assets and businesses in both the OECD and select emerging market countries.

GIP's other port sector investments are a joint-controlling 27 per cent interest in Port of Brisbane, Australia; 50 per cent of International Trade Logistics in Buenos Aires, Argentina and 100 per cent of Great Yarmouth.

MSC is a privately owned shipping line, founded in 1970, which is now the number two global container shipping line (behind Maersk Line), operating 446 containerships with an intake capacity of over 2,200,000 TEU.

TIL invests in, develops and manages container terminals around the world. It was founded in 2000 to secure berths and terminal capacity in major ports used by MSC. TIL terminals are hubs and gateways in Europe, Asia, North America, South America and West Africa.

Source : HKSG.