Latin America: Impala hires Citi to sell stake in LatAm ops

20 July 2018 - 12:00 am UTC

Impala Terminals engaged Citigroup to sell 50% of its Latin American operations as it looks to tap into a fertile ground for institutional capital, said three sources briefed on the situation.

First round bids were submitted at the end of June, said one of the sources.

The ports owner, a division of global commodities trader Trafigura, has ports in Brazil and Colombia, and warehouses in Mexico and Peru, according to a company website.

OTPP sold a 62.5% stake in GCT Global Container Terminals on 7 June to British Columbia Investment Management and IFM Investors. Also, Maersk received competitive bids in the spring for a 50% stake in APM Terminals before cancelling the auction, as reported by Inframation.

Last year, Impala Terminals revenues jumped to USD 389.8m in 2017 from USD 375.8m, year-over-year, as its shipping volume jumped even more to 22.6 million metric tons (mmt) in 2017 from 15mmt, year-over-year, according to Trafigura’s 2017 annual earnings report.

Trafigura built up its ports operations considerably in recent years including investing over USD 1bn in an inland port in Barrancabermeja and a multimodal transport system linking the Carribean coast with the industrial heartland in 2017 and also ramping up operations in Brazil and Peru to support that country’s mining operations.

Citigroup and Impala Terminals declined to comment.