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 The deal to win Associated British Ports Holdings plc was still at sea Thursday, June 15, as a Goldman Sachs-led bidding consortium raised its offer for the UK-based operator from $4.56 billion to $4.8 billion, hoping to fend off encroaching Macquarie Bank Ltd., 3i Group plc and the Canadian Pension Plan Investment Board, who said Wednesday, they had teamed up to consider offer. It had looked like AB Ports was finally docked Wednesday, by the Goldman-led consortium, known as Admiral Acquisitions UK Ltd. The international investment arm of New York-based bank Goldman Sachs along with Borealis Infrastructure Management Inc., which is a vehicle of Ontario Municipal Employees Retirement System and Singapore government-owned GIC Special Investments Pte Ltd. thought they had won AB Ports with a sweetened €2.48 billion ($4.56 billion) offer. But then Macquarie et all rocked the boat, saying they were musing a bid.
The new offer breaks down to 840 pence per share, a 21% premium to its 696 pence share price March 24, immediately before the company revealed it had received a takeover approach. The Goldman Sachs-led consortium's bid still needs shareholder approval as well as the OK from the U.K. High Court. INSIDE THE PORTS London-based AB Ports operates 21 port facilities in the U.K. with pretax profit in 2005 of £135.8 million on revenue of £434.9 million. AB Ports handles about 25% of Britain's seaborne trade. The company also manages large automobile transport terminals in the U.S. at the ports of Brunswick, Ga.; Baltimore, Md.; Benicia, Calif.; and Jacksonville, Fla. through its Amports division. REJECTED ON FIRST DATE AB Ports initially rejected the Goldman Sachs' consortium initial bid of 730 pence per share, or £2.2 billion ($3.8 billion) on March 29, considering the offer "wholly inadequate." PART OF A TREND In a time when global trade is booming, port assets seem to be in high demand. So its no surprise that other port companies have been acquired such as Britain's PD Ports plc for £261 million by Australia's Babcock & Brown Ltd. Dubai-based DP World also purchased U.K.-based ports operator Peninsular and Oriental Steamship Navigation Co. for £3.9 billion ($6.8 billion). The deal, however, excluded the U.S. ports owned by P&O because of outcry in the U.S. over an Arab-run country managing domestic ports.—Gerald Magpily
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