The International Container Terminal Services, Inc. (ICTSI) on Friday announced the completion of the sale of 80.19 percent of PT ICTSI Jasa Prima Tbk (IJP), its Indonesian subsidiary, to PT Sarana Kelola Investa.
The sale forms part of the strategy to streamline ICTSI operations and focus on concession contracts where it holds complete control.
The transaction, signed on 22 January, was valued at $2 million.
PT ICTSI Jasa Prima Tbk is a listed company in Indonesia engaged in the development, construction and operation of terminals and maritime logistic infrastructure.
In a separate statement, ICTSI said the International Longshore and Warehouse Union and ICTSI Oregon, Inc. jointly announced reaching a settlement of all legal claims.
“Specifically, the settlement finally resolves all ICTSI’s claims against ILWU relating to the decade-long litigation captioned ICTSI Oregon, Inc. v. International Longshore and Warehouse Union, et al., Case No. 3:12-cv-1058-SI, pending at the United States District Court 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 retrial on damages, was stayed by the commencement of ILWU’s and Local 8’s bankruptcy cases on September 30, 2023 and October 18, 2023, respectively.
Pursuant to the settlement, ICTSI will receive payment of USD20.5 million.
The ILWU settlement arises from the parties’ participation in several days of mediation during ILWU’s chapter 11 bankruptcy case, which will be voluntarily dismissed as part of the terms of the settlement.
ICTSI earlier posted net income of USD484.54 million in the January to September period in 2023, higher by 4 percent from USD465.13 million earned in the first nine months of 2022.
Revenue from port operations increased three percent to USD594.88 million from USD576.70 million.
