Razon: ICTSI in talks with Hanjin creditors
INTERNATIONAL Container Terminal Services Inc. (ICTSI) remains interested in taking over Hanjin Heavy Industries and Construction Co. Philippines, with the Razon-led firm looking to win the bankrupt shipbuilder’s creditors over.
“We’re making presentations to the banks; the banks own it now,” ICTSI Chairman Enrique Razon Jr. told reporters on Thursday on the sidelines of the port operator’s annual stockholders’ meeting.
He said the firm was crafting a masterplan to be presented to the five Philippine banks — Rizal Commercial Banking Corp. (RCBC), BDO Unibank Inc., Land Bank of the Philippines (LandBank), Metropolitan Bank and Trust Co. (Metrobank), and Bank of the Philippine Islands (BPI) — owed some $412 million by Hanjin.
If the takeover is successful, Razon reiterated plans to turn the Subic-based shipyard into a multipurpose facility, but also stressed they could still abandon the bid.
“The [only] problem is the road isn’t really good. Mabuti ang shipbuilding because nandun lang sila sa (shipbuilding is good because of the location) but for other things, the road is a problem,” he noted.
“If it doesn’t work for us, we’re not gonna do this.”
Razon said in February that he was keen on acquiring Hanjin after the latter filed for bankruptcy at the start of the year.
In a television interview, he said the shipyard operations could continue, albeit at a smaller scale, with the rest of facility turned into an industrial complex with container port facilities, a liquefied natural gas power plant, and dry bulk/agricutural support handling services.
Also on Thursday, Razon said he was also cautiously optimistic for 2019 amid an expected shipments slowdown due to the US-China trade war.
ICTSI has allotted $380 million this year for expansion, with the bulk for to be used for Philippine operations.
“We are optimistic in our terminals. We have to build ourselves so that we can handle bigger ships in our terminals,” Razon said.
ICTSI shares closed down by P1.30 to P132 each amid the Philippine Stock Exchange index’s 0.23-percent dip.
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