Nigeria: ZIM has announced that it has signed a deal that will yield US$154 million in cash, and a gross profit of US$120 million. ZIM will sell its stake (47.5 percent) in TICT (Tin-Can Container Terminal), the second largest container terminal in Nigeria, as well as sign a ten-year agreement with the terminal for vessels' calls in Lagos and sell additional rights in connection with the asset.
The purchasing group is a joint veture 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.
The transaction, which was planned for 2011 according to Zim's long term business plan, was finalised earlier than planned.
The terminal, located in Lagos, Nigeria, is 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.
The terminal operates three berths, with a capacity of around 360,000 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 has extensive commercial activities in Nigeria, and operates a number of shipping lines, connecting Asia, Europe and the United States, to Nigeria, as well as a fully owned shipping and logistics agency in Lagos.
Completion of the transaction, still subject to various regulatory approvals, is expected within the next two weeks.
"ZIM operates on a wide scale in the trade between Asia, Europe and the United States, to Nigeria," said ZIM's President and CEO, Rafi Danieli
"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."
ZIM's CFO, Allon Raveh, who managed the port sale, said the deal will generate immediate additional liquidity of US$154 million for ZIM, in addition to the company's accumulated cash reserves, which at the end of the second quarter amounted to US$228 million.
