A consortium including Goldman Sachs is considering bidding for Britain's largest ports group Associated British Ports Plc, joining a growing list of offshore predators snapping up UK port operators.
Goldman Sachs said on Monday it was working with investment groups from Canada and Singapore on a possible bid which analysts said could value the owner of 21 UK ports at more than 2 billion pounds ($3.5 billion).
The news, which follows a $6.8-billion take-over of UK ports operator P&O, sent AB Ports shares to a record high of 751-1/2 pence. The stock was up 3.09 percent at 717-1/2p at 1500 GMT.
"It is no surprise. The whole sector is gradually disappearing by hook or by crook," Investec analyst John Lawson said.
Port operators like AB Ports have become attractive targets due to their stable income streams, large property portfolios and buoyant shipping markets on the back of growth in Chinese demand.
Dubai Ports World completed its take-over of P&O this month, while an Australian investment fund bought Britain's PD Ports for 337 million pounds in January. Forth Ports is the only remaining UK ports group that has not faced a bid so far.
Goldman Sachs said it had teamed up with Borealis, the investment vehicle of Ontario pension fund OMERS, and GIC Special Investments, the private equity arm of the Government of Singapore Investment Corporation.
AB Ports handles a quarter of Britain's seaborne trade. Its 21 UK ports include Hull in north-east England and Plymouth in the south west. It also has four port operations in the United States. The firm said on Monday it had not received a bid proposal but noted Goldman Sachs' announcement.
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