SINGAPORE : Port operator PSA International is in the lead for
the race to take over British ports and ferries group
P&O.
This is after P&O agreed to an offer from PSA which values
P&O at US$6.4 billion, or 3.5 billion pounds.
That works out to 470 pence a share, thumping an earlier offer of
433 pence from Dubai World Ports by some 7 percent.
PSA is seeking to strengthen its position in the shipping industry,
and it has been looking for growth opportunities outside
Singapore.
Last year it spent more than US$1 billion buying port assets in
Hong Kong for better access to China's booming market.
PSA also has investments in 19 ports in 11 countries.
But a tie-up with P&O will give it greater presence in India, a
market which is increasingly growing in importance.
P&O had actually agreed to a takeover from Dubai Ports World,
which like PSA is also seeking become a key global player.
But since that deal was announced in November, there was
speculation that PSA would get into the fray.
With PSA now having made a formal offer analysts are expecting
Dubai Ports to come up with a counter bid, setting the stage for a
bidding war.
If PSA gets to buy P&O, it plans to merge its operations with
those of P&O, creating one of the world's largest port
operators and overtaking Hong Kong's Hutchison Whampoa. - CNA
/ct
Woot! This means singapore is now the number 1 port operator in the
world!
PSA could possibly list on the SGX this or next year to finance
something this huge? 