Value of sold-off ports is soaring
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.FORTH PORTS, privatised through a flotation last year, is planning a pounds 100m bid for rival Medway Ports, prompting a bonanza for Medway staff and potential embarrassment for the Government, writes Jason Nisse.
Sources close to Medway, which is hoping to float on the stock market next year, said approaches have been made by Forth Ports that might lead to an agreed bid. There have also been approaches from Powell Duffryn, majority owner of the Tees & Hartlepool port, and from Mersey Docks and Harbour Co.
The successful bidder is expected to have to pay at least pounds 100m, against the pounds 37m tag on Medway when it was privatised in in March last year through a management buyout, backed by Charterhouse bank.
Such a price would give massive profits for the 300 Medway employees. Under a recent incentive scheme, they have each been granted up to pounds 35,000 worth of share options at 250p a share. At pounds 100m, these shares would be worth pounds 35 each.
It would also bring a threefold profit for Charterhouse and is expected to lead to questions in Parliament about the price at which Medway was sold. The privatisation was heavily criticised at the time by Labour, which claimed the ports were being sold off on the cheap.
Forth would be likely to fund the purchase through a rights issue. Its shares have performed strongly, closing at 311p on Friday compared with a float price of 110p.
Forth Ports recently formed a joint venture property company which has announced a pounds 47.5m deal to develop an office block for the Scottish Office.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments