In This Article:
AP Moller-Maersk’s main shareholder made an all-cash bid for Svitzer that values the Danish towage and marine-services provider at around $1.3 billion.
A.P. Moller Holding, the Maersk family’s investment arm, currently owns 47% of Svitzer through its APMH Invest subsidiary and is now offering to buy the remaining shares it doesn’t already own.
Most Read from The Wall Street Journal
-
AppLovin and Amazon Emerge as TikTok Bidders Ahead of Trump’s Deadline
-
‘MAHA’ Supporters Want More Beef Tallow. There’s Not Enough.
The offer values Svitzer at around 9 billion Danish kroner ($1.3 billion).
Svitzer has a fleet of tug boats that help maneuver ships in and out of ports and terminals and also offers services such as line handling and personnel transfer, among others. It demerged from shipping giant A.P. Moller Maersk last year and listed on Nasdaq Copenhagen.
APMH Invest said in a statement that the listing hasn’t resulted in the expected level of investor interest, so a delisting and private ownership will better support its continued growth, a move it said is essential to maintain Svitzer’s market position in a competitive and fragmented industry undergoing consolidation.
It has offered 285 kroner a share, a 32% premium to Svitzer’s closing price on Tuesday. The price will be lowered to 277 kroner subject to payment of the 8 kroner dividend that has been proposed by Svitzer.
Svitzer shares listed at 200 kroner last April, and after quickly rising to a peak of around 283 kroner, have slid to a level of around 216 kroner Tuesday.
APMH Invest said its planned acquisition will better position Svitzer to strengthen its market position and capitalize on opportunities by becoming part of A.P. Moller Holding and benefiting from its financial support.
Svitzer would retain its current management and strategy and continue to operate under its current name and brand. There are no plans to implement any big changes for employees or general employment terms as a result of the deal.
Svitzer’s board recommended that shareholders accept the offer.
Write to Dominic Chopping at dominic.chopping@wsj.com
Most Read from The Wall Street Journal
-
Consulting Giants Offer Billions in Cuts to Federal Contracts. It Might Not Be Enough.
-
Accused Tech Spy Says Rival CEO Recruited Him With Offer to Be Like James Bond
-
A Week in the Life of a Home Builder Tariff-Proofing the Business
-
A Big Coal Plant Was Just Imploded to Make Way for an AI Data Center