ZIM sells its container terminal in Nigeria for $154 million

The purchasing group is a JV between "China Merchants" and the “China-Africa Development Fund”. ZIM’s President & CEO, Rafi Danieli: The structure of the current deal, ensures the continued partnership between ZIM and TICT for many years to come
 
 
ZIM announced today that it has signed a deal that will yield 154 million US Dollars in cash, and a gross profit of US Dollars 120 million. As part of the deal, ZIM will sell its stake (47.5%) in TICT (“Tin-Can Container Terminal”),‎of container terminal in Nigeria, sign a 10-year agreement with the terminal for vessels’ calls in Lagos and sell additional rights in connection with the asset.
 
The purchasing group is a JV between "China Merchants", a public company listed on the Hong-Kong Stock-Exchange and one of the largest terminal operators in China, and the “China-Africa Development Fund”, stated ZIM.The transaction, which was planned for 2011 according to Zim’s long term business plan, was finalized earlier than planned.
 
The terminal, located in Lagos, Nigeria, was jointly owned by ZIM and the international logistics group Bollore, headquartered in Paris, which will remain a shareholder of the terminal along with China Merchants.
 
According to ZIM, The terminal operates three berths, with a capacity of around 360,000 containers (TEU) per year, and a fourth one presently being upgraded, which, when completed, will increase the terminal capacity to about 400,000 TEU per year.
 
ZIM’s President & CEO, Rafi Danieli, said: "In recent years ZIM made significant investments to develop the terminal, bringing it to commercial success. The structure of the current deal, ensures the continued partnership between ZIM and TICT for many years to come, and ZIM’s customers will continue to enjoy the highest levels of service in Nigeria. The purchaser is an experienced group in operating and developing container terminals, and I am convinced that it will continue to make a valuable contribution to the Nigerian economy and port development. At the same time, the improved liquidity will allow ZIM to develop and expand its shipping transportation activities in the international lines in Asia, North America and Europe. "
 
ZIM’s CFO, Allon Raveh, who managed the port sale, said: "The deal will generate immediate additional liquidity of 154 million US Dollars for ZIM, in addition to the company's accumulated cash reserves, which at the end of the second quarter amounted to 228 Million US dollars. Upon completion of this deal, we will also successfully complete another stage in the implementation of our long-term business plan. This will contribute to a significant improvement in ZIM’s financial profile, which also gives us additional management flexibility and stability."
 

Completion of the transaction, still subject to various regulatory approvals, is expected within the next two weeks.