ABP accepts Goldman Sachs consortium’s $4.57 billion offer
The board of the United Kingdom’s largest port group, Associated British Ports Holdings, has accepted a '2.48 billion ($4.57 billion) offer from the Goldman Sachs-headed consortium made at the end of last month.
Under the terms of the offer, shareholders will receive '8.10 ($14.90) per share.
“ABP is a unique strategic asset. The consortium’s offer reflects that and recognizes the strong operational and financial performance of the business. This is an excellent opportunity for shareholders to realize the significant value that has been created,” said Chris Clark, ABP’s chairman.
The consortium — Goldman Sachs, Canadian pension fund Borealis Infrastructure Management Inc., the Government of Singapore Investment Corp. and Infracapital Partners (acting through its manager M&G Investment Management Ltd.) — have established a new company, Admiral Acquisitions UK Ltd., to handle the takeover.
ABP’s directors have committed to selling 97,802 shares, representing 0.032 percent of ABP’s existing issued ordinary share capital to Admiral. The consortium members said that Bo Lerenius, ABP’s group chief executive, and Richard Adam, the group finance director will continue in their roles following completion of the acquisition.
Not long after rejecting a preliminary takeover from the same consortium, in April, Lerenius received 73,002 shares valued at '7.26 ($13.37) each as well as options for the same amount. Richard Adam was given 47,520 shares and the same number of options and Douglas Morrison, ABP’s executive director received 20,110 shares and options for the same figure.
ABP handled 129.3 million tons of cargo at its 21 British ports in 2005, giving it about 23 percent of the U.K. market share. The company three weeks ago sold its U.S. auto-processing company AMPORTS Inc., to an affiliate of U.S. private equity firm Lincolnshire Equity Fund for $107.8 million.
ABP’s share price on the London Stock Exchange was '8.37 ($15.40) at 12.50 p.m. local time today, up 7.7 percent, or by 60 pence ($1.10) from Tuesday’s closing price.