P&O 'set for stock market return'
Iconic British ports and ferries company P&O was today said to be looking at a shock return to the London stock market just months after it set sail for Dubai.
The Sunday Times said Dubai Ports World is preparing to float the newly acquired P&O in London with a value of up to £6bn (€8.7bn).
State-owned DP World bought P&O for £3.9bn (€5.6bn) earlier this year after a bidding war with the government of Singapore.
The takeover brought to an end 168 years of independence for P&O, which was originally called the Peninsula & Oriental Steam Navigation Company and carried cargo across the British Empire in its heyday.
The Sunday Times said the proposed listing in London will comprise P&O’s 29 container terminals around the world, including Southampton and Tilbury, as well as other prized ports already owned by DP World.
Among them is said to be its flagship asset Jebel Ali, the largest port in Dubai, meaning that the floatation will offer investors a stake in some of the world’s biggest freight hubs.
It is thought that DP World will list 20% of the company on both the London Stock Exchange and the Dubai International Financial Centre. It will raise £1bn (€1.4bn) to fund further acquisitions and reduce debt.
The report said Deutsche Bank and Merrill Lynch have been appointed to co-ordinate the share offering, which could take place as early as November.
The takeover of P&O made DP World the third largest ports operator in the world but it was not without controversy.
There was fierce resistence to the deal in the United States and senators, including Hillary Clinton, called on the takeover to be blocked because it placed control of key ports such as Miami, New York, New Jersey, Baltimore and New Orleans in the hands of a foreign government.
But despite the political storm the deal was approved by regulators and the US Department of Homeland Security.
Shares in P&O steamed ahead during the bidding war as DP World and Singapore’s Temasek battled for control. In November P&O backed a £3.3bn (€4.8bn) bid from DP World but in January approved a better offer from Temasek worth £3.55bn (€5.1bn).
However, DP World immediately improved its offer to £3.9bn (€5.6bn) and in February Temasek dropped out and handed victory to DP World.
