Ports owner's US expansion
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.ASSOCIATED British Ports yesterday said it had agreed to buy American Port Services, operator of six US ports, for pounds 106m cash in an attempt to broaden its base beyond the UK.
The 190p-a-share offer is a 15 per cent premium to the American Port Services share price on 6 May, a day before ABP announced it was in talks to buy the London-listed port operator at that price.
For ABP, the move is the latest in a series of measures to boost returns, promised by managing director Andrew Smith, who joined the UK's largest port owner in February 1997.
"APS is an excellent strategic acquisition for ABP which allows us to extend our port operations into North America,'' Smith said in a statement.
ABP shares were down 2p at 365p. APS shares rose 6.5p to 186p.
APS was established in 1995 as a vehicle to sell shares in the Port of Benicia in California and later expanded with the purchase of the Hobelmann Group, a port services business on the eastern seaboard of the US. APS also manages nine US airports.
The company had profits before tax of pounds 6.3m on sales of pounds 37.5m last year, compared with ABP's pre-tax profit of pounds 99m on sales of pounds 286.9m.
With 23 ports, ABP handles about one-quarter of the UK's seaborne trade. Smith has reorganised its ports operation and launched a pounds 100m share buy-back in an effort to accelerate earnings growth.
- Bloomberg
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments