Macquarie Bank Makes Renewed Bid for AB Ports Worth £2.7bn

Strategic Insights -

British ports operator AB Ports is at the centre of a high-stakes bidding war after Macquarie Bank's consortium, led by the Australian investment firm, trumped Goldman Sachs' offer with a proposed £2.7bn bid. The move comes after AB Ports accepted a lower offer from Admiral, the Goldman-backed consortium, and follows speculation that other bidders may emerge, including Cheung Kong Infrastructure Holdings. AB Ports' chief executive, Bo Lerenius, is expected to meet with representatives from Admiral and Britannia this week to discuss their proposals, while Goldman Sachs has expressed its intention to remain in the auction.

Key Takeaways:

  • Macquarie Bank's consortium is leading a £2.7bn bid for AB Ports, valuing the company at approximately £2.7bn.
  • The bid is expected to be around 865p per share, well above the Goldman Sachs-backed Admiral's offer of 840p.
  • AB Ports' chief executive, Bo Lerenius, has received offers from both Macquarie and Goldman, having previously rejected a 320p-a-share offer and a 730p-a-share offer from Goldman in March.
  • The bidding process is gaining momentum, with speculation that Cheung Kong Infrastructure Holdings and other bidders may emerge, driving up the price.
  • AB Ports has increased in value by almost 50% this year and over 80% in the past 12 months, with shares closing at 869p on Friday.
  • The deal would make AB Ports the third UK ports operator to be acquired in six months, following DP World's acquisition of P&O and Babcock & Brown's purchase of PD Ports.
  • Macquarie Bank is now the world's largest non-governmental owner of infrastructure assets, operating in partnership with 3i and a Canadian pension fund.

Statistics:

  • £2.7bn - proposed value of AB Ports under Macquarie's bid.
  • 865p - expected share price under Macquarie's bid.
  • 840p - Goldman Sachs-backed Admiral's offer per share.
  • 320p - initial rejected offer from six years ago.
  • 730p - initial rejected offer from Goldman in March.
  • 869p - closing share price on Friday.
  • 50% - increase in AB Ports' value this year.
  • 80% - increase in AB Ports' value over the past 12 months.
  • 21 - number of UK ports operated by AB Ports.
  • 80% - stake held by Hutchison Whampoa in Cheung Kong Infrastructure Holdings.
  • £3.9bn - value of DP World's acquisition of P&O.
  • £607m - value of Babcock & Brown's purchase of PD Ports.

Sources:

  • "Cheung Kong Infrastructure Holdings (CKI) - a Hong Kong-based infrastructure group in which Hutchison Whampoa has a near 90 per cent stake - is believed to be considering an offer." - [Source: The Financial Times]
  • "Shares in AB Ports - which operates 21 ports in the UK, including Hull, Southampton and Immingham - have increased by almost 50 per cent this year, and more than 80 per cent over the past 12 months." - [Source: The Financial Times]
  • "Earlier this month, Goldman was pipped to the post by the Spanish infrastructure group Ferrovial in the auction for BAA, the British airports operator." - [Source: The Financial Times]