Singapore’s GIC has taken a 10% stake and MSC has increased its holding in TIL to 60%
Global Infrastructure Partners (GIP) and a group of its Co-Investors have sold a 10% stake in Terminal Investment Limited SA (“TIL”) to GIC, Singapore’s sovereign wealth fund. At the same time MSC has increased its stake in TIL from 51% to 60%, MSC announced.
GIP purchased a 35% stake in TIL in 2013 for US$1.9 billion. It later increased that stake to almost 49% as part of a deal where GIP’s 50% stake in Argentina’s International Trans Logistics (ITL), which included the Exoglan terminal in Buenos Aires, was transferred to TIL.
GIC was pleased to announce the deal. “TIL has a globally diversified portfolio that handles the container volumes of the Mediterranean Shipping Company (MSC), the world’s second largest container shipping line, and other third parties including Maersk which is MSC’s 2M shipping alliance partner,” it stated.
The move is interesting because so far Singapore has invested in ports outside of the country via PSA International, which is owned by Temasek Holdings. As well as investing in terminals directly through concessions and shareholdings, PSA International owns a stake in another port operator, Hutchison Port Holdings. Both Temasek and GIC are technically “reserves management entities” owned by the Singapore Government.
Ang Eng Seng, Chief Investment Officer of Infrastructure at GIC, said: “We are pleased to invest in TIL, given its strong business alignment with its majority shareholder, MSC, and attractive growth potential from its pipeline of both existing and new terminals. We expect TIL to be well-placed to benefit from the increasing demand for containerized goods as the global middle class and manufacturing outsourcing continue to expand. As a long-term investor, we look forward to partnering with MSC, TIL’s management and GIP to support the future growth of the company.”
TIL has an operating presence in approximately 40 ports in 29 countries and in 2018 handled an estimated 34M TEU. Its largest customers are its parent MSC and Maersk Line, its partner in the 2M alliance.
WCN understands that GIP may make further disposals, but a full withdrawal from TIL seems unlikely. GIP’s shareholding now stands at just under 29%.