Forth Ports, UKs Last Independent Ports Operator Goes Private

Forth Ports, the sole remaining listed port operator is agreeing to go private after backing a £760million acquisition from Arcus, the company’s largest shareholder and infrastructural investor already owning 22.8% of the company.

Comprised of six ports in the UK, Forth Ports accepted the 1630p per share, and a 20p per share dividend offer from Arcus, after a series of failed takeover attempts since May 2010.  The chairman of Forth Ports stated that the deal with Arcus provides the shareholders of Forth Ports an opportunity to cash in on their investment at a fair price.  Shares have risen 12% in the last month, valuing the business at around £735m.

The last unsuccessful offer from Arcus valued at £640million was rejected, as Forth Ports saw a 5% revenue rise and boosted their annual profit by a tenth.  Forth Ports included in merge conditions that the company headquarters are to remain in Edinburgh, Scotland.  Chief Executive Charles Hammond assured that the entrance of foreign owners from the private equity investment fund would not shift the company’s leadership or general focus. 

The expected takeover is likely to yield plans to redevelop Forth’s dockside real estate portfolio for use in future renewable fuel projects, like onshore wind. 
If the deal is finalized, Forth Ports has followed in the steps of other UK port operators, P&O, Mersey Docks, PD Ports, Associated British Ports and Simon Group. 

Forth Ports currently own and operate Leith, Grangemouth, Methil, Burntisland, Rosythwell, Dundee on the River Tay and Tilbury on the River Thames.