P&O SELLS HALF OF ABC TO SHIPPER PARTNERSHIP

P&O SELLS HALF OF ABC TO SHIPPER PARTNERSHIP    The Peninsular and Oriental Steam Navigation Company, based in London, has agreed to sell 50 percent of the shares in its bulk shipping subsidiary, Associated Bulk Carriers, to Eurotower Holdings SA.
   Eurotower Holdings is part of S/A Monegasque d’Administration Maritime et Aerienne (SAMAMA), a private group of shipping companies.
   At the same time, P&O transferred the commercial and technical management of ABC vessels to Zodiac Maritime Agencies Ltd., of London, a private ship management firm that operates a number of SAMAMA’s vessels.
   ABC’s 22-vessel fleet of cape-size dry cargo ships will be pooled with Zodiac’s fleet of nine such vessels, for a total of 5 million deadweight tons.
   According to P&O, proceeds from the sale are expected to be about 68 million pounds ($101 million).
   “The net debt on the P & O Group balance sheet will be reduced by approximately 208 million pounds,” a company statement said. “After adjusting for goodwill and other items, there will be an overall reduction in the P&O Group net equity of approximately 62 million pounds.”
   “This partnership will enable P&O to manage the transition out of what is now a non-core business for the group as we move forward,” said Sir Bruce MacPhail, P&O’s managing director.
   P&O’s core business consists of container shipping, as well as ferry and ports operations.