INTERNATIONAL Container Terminal Services Inc. (ICTSI) has completed the sale of its 80.19-percent stake in PT ICTSI Jasa Prima Tbk, its listed subsidiary in Indonesia, to PT Sarana Kelola Investa, for a consideration of $2 million.
PT ICTSI Jasa Prima is a listed company in Indonesia engaged in the development, construction and operation of terminals and maritime logistics infrastructure.
The divestment is said to be part of ICTSI's strategy to streamline operations and concentrate on full concession contracts where it exercises control over regulatory and commercial activities.
The transaction was signed last January 22, the company said.
In a separate statement on Friday, ICTSI also said that ICTSI Oregon Inc. and the International Longshore and Warehouse Union (ILWU) had reached a settlement of all legal claims involving a labor dispute.
"Specifically, the settlement finally resolves all ICTSI's claims against ILWU relating to the decadelong litigation captioned ICTSI Oregon Inc. v. International Longshore and Warehouse Union, et al., Case No. 3:12-cv-1058-SI, pending in the United States District Court for the District of Oregon, in which a jury determined that ILWU and ILWU Local 8 engaged in unlawful labor practices," ICTSI said.
The litigation, which was set for a retrial on damages, was stayed by the commencement of ILWU's and Local 8's bankruptcy cases on Sept. 30, 2023 and Oct. 18, 2023, respectively.
Pursuant to the settlement, ICTSI will receive payment of $20.5 million.
The ILWU settlement arises from the parties' participation in several days of mediation during ILWU's chapter 11 bankruptcy case, which will now be voluntarily dismissed.
For the first nine months of 2023, ICTSI had reported a net income of $484.54 million, up 4 percent from the $465.13 million booked in the same period a year earlier.
In the same period, revenue from port operations increased by 3 percent to $594.88 million from $576.70 million previously.
On Friday, ICTSI shares closed up by P5.00, or 2.06 percent, at P248 each.