Westports said in a stock market announcement that the acquisition is being ahead of future expansion as its Container Terminal 10 to Container Terminal 19 needs extra land for wharfs and yard space and reclamation work would be required.
“The proposed acquisition is for a terminal expansion as the current preliminary port design for Container Terminal 10 to Container Terminal 19 requires additional land acreage to accommodate new wharf and container yard space to facilitate the effective operations of the new container terminals,” said Westports.
Read More: Westports expansion seen needing up to $2.3bn
The group said the utilisation of the proposed land for terminal expansion would be possible only after land reclamation had been carried out, adding that land reclamation had also been carried out at its existing Container Terminals 6, 7, 8 and 9.
It noted the purchase consideration will be satisfied entirely in cash which will be funded by internally generated funds and bank borrowings.
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