PSA, the Singapore port operator, has withdrawn from the three month bidding battle for P&O. The way is now essentially clear for DP World to secure ownership of the UK container terminal operator.
PSA is considered the number three operator by capacity and said that a higher bid would not be compatible with commercial sense or its future success. Its offer of 470p a share on 26th January was trumped within hours by DP World, offering 520p, which valued P&O at £3.92bn.
If DP World’s purchase goes ahead, they will become the fourth largest container terminal operator.
In a recent update at a meeting held in the Wembley Conference Centre, the P&O board announced that the sale of the company to DP World would go ahead. Shareholders voted overwhelmingly to sell the British container ports and ferries operator for 520p a share, valuing the company at £3.92bn.
Although every motion was approved by more then 99 per cent, many voices from among the several hundred shareholders present, raised questions about the deal. One shareholder present, Captain David Hawker glared at the chairman Sir John Parker and protested at the sale of the iconic British company to a foreign company. He said: ” I am astounded at the ignorance of so many in the business world over understanding the lessons of history. It was after all, seafarers who built the British Empire. Now Isee every business in this country seems to have one object only – to seel out to Johnny Foreigner. If this board couldn’t run this business successfully, why didn’t you say so. “