• ITVI.USA
    15,360.600
    75.400
    0.5%
  • OTLT.USA
    2.768
    -0.011
    -0.4%
  • OTRI.USA
    21.410
    -0.010
    0%
  • OTVI.USA
    15,331.810
    75.820
    0.5%
  • TSTOPVRPM.DALLAX
    1.590
    0.150
    10.4%
  • TSTOPVRPM.LAXSEA
    4.080
    0.130
    3.3%
  • TSTOPVRPM.LAXDAL
    3.330
    0.020
    0.6%
  • TSTOPVRPM.ATLPHL
    3.300
    0.000
    0%
  • TSTOPVRPM.PHLCHI
    2.170
    0.020
    0.9%
  • TSTOPVRPM.CHIATL
    3.140
    0.190
    6.4%
  • WAIT.USA
    125.000
    -1.000
    -0.8%
  • ITVI.USA
    15,360.600
    75.400
    0.5%
  • OTLT.USA
    2.768
    -0.011
    -0.4%
  • OTRI.USA
    21.410
    -0.010
    0%
  • OTVI.USA
    15,331.810
    75.820
    0.5%
  • TSTOPVRPM.DALLAX
    1.590
    0.150
    10.4%
  • TSTOPVRPM.LAXSEA
    4.080
    0.130
    3.3%
  • TSTOPVRPM.LAXDAL
    3.330
    0.020
    0.6%
  • TSTOPVRPM.ATLPHL
    3.300
    0.000
    0%
  • TSTOPVRPM.PHLCHI
    2.170
    0.020
    0.9%
  • TSTOPVRPM.CHIATL
    3.140
    0.190
    6.4%
  • WAIT.USA
    125.000
    -1.000
    -0.8%
American Shipper

P&O Nedlloyd sees “no negatives” in public listing

P&O Nedlloyd sees “no negatives” in public listing

P&O Nedlloyd sees “no negatives” in public listing

   Philip Green, the chief executive officer of P&O Nedlloyd, said he sees “no negatives” in the company’s proposed transformation into a stock market-listed company.

   Asked whether P&O Nedlloyd would be competing on an uneven playing field if it has to disclose more information than its privately held competitors, Green said such differences were common in other industries, with no adverse problems for public companies.

   Robert Woods, CEO of the P&O group and former group managing director of P&O Nedlloyd, said the company will still pay the same costs for ships and supplies as other container shipping lines, irrespective of their status as public or private companies.

   Green said the buyout would “remove the uncertainty” surrounding the ownership of P&O Nedlloyd. He said a future simplified management and board structure would speed up decision making. As a public company, P&O Nedlloyd would have “access to capital markets” and “control over its strategic direction,” Green added.

   Under an agreement announced Monday between the managements of Rotterdam-based Royal Nedlloyd NV and London-based Peninsular & Oriental Steam Navigation Co., Royal Nedlloyd will acquire P&O’s 50-percent interest in the P&O Nedlloyd Container joint venture, subject to the approval of stockholders and other entities. On completion of the proposed buyout, Royal Nedlloyd will be renamed Royal P&O Nedlloyd, a stock market-listed company owning 100 percent of P&O Nedlloyd and 50 percent of the Dutch airline Martinair.

   Haddo Meijer, chairman and CEO of Royal Nedlloyd, said the deal is “fair” between Royal Nedlloyd and P&O because the transfer of the P&O Nedlloyd stake will be at close to book value, with no premium paid. Meijer said that making a decision on the future ownership of P&O Nedlloyd has been the “top priority” of both shareholders since early 2003.

   “Royal Nedlloyd in its old form will cease to exist,” Meijer said.

   Both Royal Nedlloyd and P&O will hold extraordinary general meetings of shareholders in March or April to submit the buyout plan.

   P&O Nedlloyd recognized that it has underperformed its competitors in recent years, but its management believes the new structure will help close the gap.

   “We need to more efficiently manage our costs,” Green said.

   P&O will own a 25-percent stake in the future Royal P&O Nedlloyd. Asked whether P&O intends to keep that share, Woods replied: “We’re very comfortable with that shareholding.” He stressed the synergies between P&O Nedlloyd and P&O’s port business, but also suggested that P&O would not rule out selling the 25-percent stake.

   If P&O Nedlloyd’s buyout and public listing plans are approved, it will join a small number of container shipping lines listed on the stock market, including Orient Overseas (International) Ltd., Yang Ming Marine Transport, Evergreen Marine Corp., Wan Hai, CP Ships and Neptune Orient Lines/APL. Hapag-Lloyd has also expressed an interest in rejoining the stock market.

We are glad you’re enjoying the content

Sign up for a free FreightWaves account today for unlimited access to all of our latest content

By signing in for the first time, I give consent for FreightWaves to send me event updates and news. I can unsubscribe from these emails at any time. For more information please see our Privacy Policy.