GIC engaged Moffatt & Nichol to provide independent commercial due diligence and support, including deep dive asset reviews a review of the management business plan.
Moffatt & Nichol supported GIC, Singapore’s sovereign wealth fund, throughout its successful acquisition of a 10 percent stake in Terminal Investment Limited, the sixth largest global container operator, from Global Infrastructure Partners (GIP) and other co-investors.
Moffatt & Nichol undertook an overview assessment of the container terminal sector, evaluating key trade routes and volumes, and the main economic indicators impacting volume growth. The study also reviewed the target business’ units and the key components and drivers of revenue and EBITDA, as well as key target customers and competing facilities. Moffatt & Nichol also considered strategic issues, cargo opportunities and market risks that could impact the business and the competitive position of the target in the future.
The study involved a deep dive review of the operator’s top 14 terminals, located in Peru, Brazil, Argentina, the US, Togo, Belgium, Spain, Turkey, India, Singapore and China. The deep dive focused on the competitive position of each asset within the regional market both from a shipping and terminal perspective, identifying the main risks to existing cargo streams.
Moffatt & Nichol undertook a review of the management business plan, providing comments on the reasonableness of the main assumptions and opining on the likelihood of achieving them. This critical review served as a basis for the formulation of an independent Base Case volume and revenue forecast for valuation purposes. In addition, Moffatt & Nichol responded to various requests for additional forecast scenarios to test the impact of various economic and industry events on the operator’s future business case.
Moffatt & Nichol provided similar services to a confidential client relating to a separate minority stake in the same terminal operating company. This involved wider coverage, performing a deep dive into 22 leading target assets within the company portfolio.
Following an extensive process relating to various forecast scenarios and sensitivity analysis, the client took the decision to withdraw from the process at the final bid stage.
