Orient Overseas (International) Limited and Macquarie Infrastructure Partners today announced that OOIL’s wholly-owned subsidiaries, OOCL LLC and Long Beach Container Terminal, Inc., have entered into a Sale and Purchase Agreement to sell 100% of LBCT LLC to a consortium led by MIP, for US$1.78 billion. LBCT LLC operates the Long Beach Container Terminal (LBCT) in the Port of Long Beach, California, United States.
The sale is undertaken pursuant to the National Security Agreement entered into by OOIL, Faulkner Global Holdings Limited, a subsidiary of COSCO SHIPPING Holdings Co., Ltd, and the U.S. Department of Homeland Security and the U.S. Department of Justice on July 6, 2018, under which OOIL committed to divest its ownership of the Long Beach Container Terminal business.
As part of the sale, Orient Overseas Container Line Limited (“OOCL”), a subsidiary of OOIL, will also enter into a Container Stevedoring and Terminal Services Agreement with LBCT LLC for a 20-year period, confirming its significant long-term commitment to LBCT.
Commenting on the sale, Andy Tung, Co-Chief Executive Officer of OOCL, said: “Over the past thirty years, we have developed Long Beach Container Terminal into the safest, most efficient and lowest-emission terminal in the United States. We are confident of the future prospects of the terminal under the ownership of MIP and its co-investors, and we look forward to being a long term strategic customer of Long Beach Container Terminal and the Port of Long Beach.”
Karl Kuchel, Chief Executive Officer of MIP, commented that: “We are pleased to acquire LBCT, a premier terminal in the largest port complex in North America, which serves as a gateway for trans-Pacific trade. This transaction marks another key milestone in our relationship with OOIL and we greatly appreciate their significant long-term customer commitment to LBCT. We look forward to partnering with the Port of Long Beach and the LBCT management team to ensure that LBCT delivers high-quality service to OOCL and our other customers going forward. We are also committed to completing the current expansion of LBCT by 2022, which will significantly increase the capacity of the terminal.”
The completion of the sale will be subject to approvals from the relevant regulatory authorities and other customary conditions.
J.P. Morgan is the financial adviser and Slaughter and May is the legal counsel to OOIL.
Sea News, April 30