Zim Integrated Shipping Services will sell its minority stake in the Tin Can Island Container Terminal at the Port of Lagos to a new joint venture between China Merchants Holdings and the China-Africa Development Fund.
Zim said it agreed to sell its 47.5 percent stake for $154 million, giving it a gross profit of $120 million on the sale. The sale was moved forward from its originally planned date of completion in 2011.
China Merchants will own 60 percent of the venture, with China-Africa Development Fund taking a 40 percent stake after obtaining approval from Chinese regulators, the Chinese port operator said in a statement.
The terminal is Nigeria's second largest container terminal. Zim will also sign an agreement to call at the terminal for the next 10 years and will sell additional rights in connection with the asset. Zim's partner in the container terminal is Bollore Logistics Africa, a unit of Paris-based Group Bollore.
The Tin Can Island Container Terminal has three berths, with an annual capacity of 360,000 20-foot equivalent container units.fourth berth is being upgraded, which will increase the terminal's capacity to 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.
Zim President and CEO Rafi Danieli said the proceeds from the sale would enable the company to develop and expand its shipping transportation activities in the international lines in Asia, North America and Europe.