TORONTO, Ont. — Orient Overseas (International) Limited (OOIL) announced the sale of its Terminals Division to Ontario Teachers’ Pension Plan Board (OTPP) for US$2.35 billion in cash for 100% of the share capital of the Terminals Division.
Additionally, OTPP will assume approximately US$60 million of net debt. The consideration was determined after conducting an open bidding process. The transaction is subject to OOIL shareholders and regulatory approvals, and is expected to be completed by the end of the first quarter of 2007.
“We are very pleased with this outcome,” said Nicholas Sims, CFO of OOIL. “This transaction provides substantial benefits to both OOIL and the Terminals Division. OOIL has realized significant value for its shareholders, and in OTPP, the Terminals Division has secured a long-term owner who is focused on infrastructure assets with the ability to further enhance growth.”
OOIL’s Terminals Division comprises four container terminals located in North America: TSI Terminal Systems, which operates two container terminals – Deltaport and Vanterm – in the Port of Vancouver; New York Container Terminal on Staten Island, N.Y. in the Port of New York; and Global Terminal in Bayonne, N.J. in the Port of New Jersey.
Commenting on its purchase, Jim Leech, senior vice-president, Teachers’ Private Capital, the private investing arm of OTPP, said, “This acquisition represents solid, robust assets, has little vulnerability to market or economic vagaries, and offers the long term cash flow we look for as a pension plan. We are thrilled to welcome these assets into our portfolio and are keenly focused on continuing to invest in and expand the terminals.”
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