PON’s New spells out impact of Royal Nedlloyd deal

ALAN PEAT
IN A deal valued at Euro485-million (R4.23 billion), the Dutch-based Royal Nedlloyd will take full control of P&O Nedlloyd Container Line.
Royal Nedlloyd is to pay Peninsular & Oriental Steam Navigation (P&O) (215-m in cash for its current 50% stake in the line - and give P&O 25% percent of the venture when it is listed on the stock exchange as Royal P&O Nedlloyd.
P&O has agreed to retain its 25% equity stake for a minimum of six months following the transaction, which is still subject to approval by Nedlloyd and P&O shareholders.
Nedlloyd also intends to dispose of its 50% interest in Martinair.
This will have no direct impact on the service currently offered by the container line in SA, said P&O Nedlloyd’s Cape Town-based MD, Barry New.
“It is more strategic in the medium to long term on how we leverage our opportunities going forward,” he told FTW.
“P&O Nedlloyd effectively becomes independently listed, and will benefit from increased strategic and financial flexibility to strengthen its position as one of the leading global container shipping companies.”
The new management team will be led by recently appointed P&O Nedlloyd CEO Philip Green who said: “We will be able to focus on positioning the company to capitalise on the current upswing in the container shipping industry.”
The new entity will be worth more than (1-bn, he added, and shares should start trading on the Euronext exchange in Amsterdam at the end of April.
P&O has been seeking to reduce its stake in P&O Nedlloyd to focus on port operations and expansion in China and India - and will use the proceeds from the sale to help reduce debt.