CHINA MER PORT (00144) plans to acquire 70% equity stake in Vast in Brazil.

CHINA MER PORT (00144) announced that on February 28, 2025, its wholly-owned subsidiary, Cyber Chic Company Limited, plans to acquire 70% of the share capital of Vast from Prumo and API, including (i) the purchase price; (ii) milestone payments; and (iii) profit sharing payments. The purchase price that the buyer is required to pay at closing shall be equivalent to USD 448 million (approximately HKD 3.494 billion) in Brazilian real, and may be adjusted based on Vast's actual cash balance, outstanding debts, normal debt-equity liabilities, and working capital at the time of closing. The adjusted final purchase price shall not exceed USD 714 million (approximately HKD 5.569 billion) under any circumstances. The total amount of milestone payments is USD 56 million (approximately HKD 437 million), to be paid in four installments in Brazilian real by the buyer within 20 business days of confirmation that the relevant milestones have been achieved. Vast is a company registered in Brazil, operating an onshore oil transfer terminal at the Port of Au in Rio de Janeiro. The Au Port is an industrial deep-water port located less than 24 hours' sailing from Brazil's major offshore pre-salt oil fields. Vast is the only private oil terminal in Brazil operated by a non-Brazilian national oil company capable of receiving VLCCs (very large crude carriers). Currently, approximately 30% of Brazil's oil exports are transported through this terminal. The terminal's current average daily processing capacity is 560,000 barrels per day, with a licensed capacity of 1.2 million barrels per day. As of the announcement date, Prumo and API hold 80% and 20% interest in Vast, respectively. The announcement stated that the group has been actively exploring and seizing opportunities to effectively increase growth momentum for its existing and continually growing port services. Following the acquisition of TCP Participaes S.A. in 2017, the acquisition of Vast will enable the group to continue expanding and further consolidate its global position in the Latin American region. Furthermore, this investment will provide the group with the opportunity to further develop its global integrated port services network using Vast's maritime hub.