Forth Ports on verge of US$1.2bn takeover

Forth Ports, the UK’s last listed ports group and owners of the Port of Tilbury in London and the Scottish ports of Leith, Dundee, Grangemouth and Rosyth, is poised to recommend a £746m (US$1.21 billion) takeover by Arcus European Infrastructure Fund (Arcus), its biggest shareholder, which already owns almost 23% of the Group.


In an announcement, Forth Ports said that following the approach and on the basis of this indicative proposal, its Board had agreed that Arcus can undertake certain confirmatory due diligence.


Although the announcement does not constitute a firm intention to make an offer, it is considered that Forth Ports’ agreement to the due diligence process is an indication that takeover talks are well advanced. It is understood that the company is currently in the final stages of going through Forth's books.


Arcus has offered £16.30 (US$26.3) a share and also agreed to pay a final dividend of 20p (US$0.32) for the year ending 31 December 2010 to shareholders prior to completion.


News of the possible takeover and rumours that the bid price could rise to £19 (US$30.7) a share saw Forth Ports shares rise 5% during early trading on the London Stock Exchange on Monday to 1,608 pence; they were trading at 1,603 at close yesterday (Tuesday).


Formed less than two years ago, Arcus acquired its Forth Ports shares following the acquisition of the Babcock & Brown European Infrastructure Fund from its Australian parent for £1.8bn (US$2.9bn).


It was the lead player in the three failed takeover bids for the ports group by the Northstream consortium last year. This latest bid offer, which is nearly 20% higher than that previously submitted by the consortium, has been made by Arcus independently.


Arcus’ business interests include Euroports, the second-biggest European dry bulk port operator, in addition to Luxembourg-based Alpha Trains, which leases train rolling stock.
(Source:http://www.container-mag.com)