Australian infrastructure firm Babcock & Brown looked set to land PD Ports today after a rival suitor refused to get involved in a bidding war.
In late November the Endeavour Ports consortium tabled a £246m offer for the firm, which was backed by the board of PD Ports.
However the board then switched camps, swinging behind a £260m takeover proposal from Babcock & Brown, which Australian-based Endeavour today announced was more than it was prepared to pay.
North East-based PD Teesport is Britain’s second largest port by volume.
On top of its £260m bid, Babcock & Brown is also offering £77m for bonds which are held by PD Ports.
Under its 148.5p per share offer, PD Ports’ shareholders will also retain the right to an
interim dividend of 1.5p.
With Babcock & Brown taking its holding in PD to 8.99%, the group now owns or has undertakings on 53.1% of shares in the UK company, it said.
Babcock & Brown operates from 18 offices across Australia, the United States, Europe, Asia and Africa.
Its infrastructure division, which has made the offer for PD Ports, is one of five operating groups and counts airports and toll-roads among its businesses.
It is also the owner of Australia’s second biggest coal-exporting port.
The Endeavour consortium was made up of private equity group 3i, Australian finance services firm Challenger and Australian fund manager Industry Funds Management.
References: EGi News 19/12/05
