MANILA, Philippines – Razon-led port operator International Container Terminal Services Inc. (ICTSI) is eyeing to acquire more seaports overseas to expand its global footprint.
ICTSI chairman and President Enrique Razon said in an interview with reporters his company is looking at acquisition opportunities in Europe, US, Africa, the Middle East and Asia.
“In Asia, we are watching Myanmar, Cambodia and Vietnam. We are watching Myanmar but there is no plan to expand there right now and Cambodia is the most promising but the government is not decided yet to privatize,” said Razon on the sidelines of the company’s annual stockholders’ meeting.
ICTSI earmarked $500 million for capital expenditures this year, lower than the $550 million it earlier announced. It would use the funds mainly to finance its overseas operations, particularly in Argentina and Mexico. A portion of the capex would also be directed toward expanding its Philippine presence.
In 2012, ITCSI spent $465.6 million against a capex allotment of $550 million.
The company is embarking on a $750-million medium-term note program, and has raised $400 million so far.
ICTSI’s financing requirements are already nearly covered by the amount, said Rafael Consing, the company’s VP and treasurer. Consing added ITCSI would likely continue tapping the debt market for funds.
“In my opinion, unless there’s some game-changing acquisition, we will stick with debt. If we find a large acquisition that requires us to raise equity beyond debt capacity, then we will,” he said.
Last March, the company reported a 10% increase in its 2012 net income to $144 million. ICTSI attributed the growth to a 10% jump in port operations revenue to $729.3 million from $664.8 million.
ICTSI owns and operates 25 terminals in 18 countries. Its Philippine terminals are located in Manila, Subic, Batangas, General Santos City, Davao and Misamis Oriental. – Rappler.com