PD Ports accepts higher $597 million offer
PD Ports, owner and operator of the United Kingdom ports Teesport and Hartlepool, has accepted an offer of about '337 million ($597 million) from Australian investment company Babcock & Brown.
Babcock & Brown’s offer is equal to '1.50 ($2.66) per share, valued at '260 million with another '77 million for PD Ports’ convertible bonds.
Last week, Endeavour Ports made a '246 million ($436 million) cash offer for PD Ports.
“We are satisfied that Babcock & Brown Infrastructure is a suitable, long-term owner of the business. Accordingly, the board has decided to recommend this higher offer and advises its shareholders not to accept the offer from Endeavour Ports Ltd.,” said David Harding, chairman of PD Ports.
“PD Ports fits well within our investment criteria, providing stable cash flows with attractive measured growth opportunities. BBI already has investments in the U.K. and Europe in essential infrastructure and we fully appreciate PD Ports’ commercial importance,” said Phillip Green, Babcock & Brown chairman.
“The board of Endeavour Ports is considering its position in light of this announcement,” Endeavour Ports said in a brief statement to the London stock exchange.
Shares in PD Ports jumped about 2 percent to '1.51 ($2.67) at 1 p.m. local time today.