Forth Ports to go private in £754m deal
The last independent ports operator in Britain is to be sold, after the management of Forth Ports recommended a £754m offer from its largest shareholder.
Earnings boost: Annual profit was up 20%
Arcus European Infrastructure Fund - which already owns 22.8% of Forth Ports - bagged its target with an offer of £16.30 per share, plus a final dividend of 20p.
The private equity investment fund also backed up its proposition with a pledge to maintain the firm's headquarters in Edinburgh.
If the takeover goes through, Forth (up 20p to 1634p) will become the latest British ports firm to fall into private hands, going the way of P&O, Mersey Docks, PD Ports, Associated British Ports and Simon Group.
The deal was unveiled as the firm released annual figures showing pre-tax profit up 20% to £53.6m, while the value of its property portfolio increased from £108.5m to £115.5m as the real estate market recovery continued.
Agreement on a takeover puts to bed a long-running saga, which saw Forth turn down three offers from the Northstream consortium, itself led by Arcus, last year.
Chief executive Charles Hammond stands to see the value of his shares crystallised at £1.7m, while chief financial officer Wilson Murray is sitting on stock worth £2.9m.
Fund manager Schroders has also swung its 13.4% shareholding - worth £100m at the offer price - behind the Arcus bid.
Hammond insisted that the entrance of foreign owners would not change the company's focus or leadership. The takeover is expected to see the company press ahead with plans to redevelop Forth's dockside real estate portfolio for use in renewable fuel projects such as biomass and onshore wind.
And Hammond said Tilbury was ready to expand by some 20% and would benefit from its status as the port of the London 2012 Olympics.
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