A.P. Moller Holding (APMH), based in Denmark, has announced a cash offer of 9 billion Danish crowns, equivalent to $1.3 billion, for Svitzer, a provider of towage and marine services. This offer represents a 31.7% premium over the closing share price recorded in Copenhagen on the previous Tuesday.
APMH, which previously spun off Svitzer via an initial public offering (IPO) in April last year, already owned 47% of Svitzer’s shares prior to this bid. The offer has received unanimous support from the independent board members at Svitzer, indicating a strong vote of confidence in the proposal. It’s important to note that APMH is also the controlling entity of the major shipping company A.P.
Moller-Maersk. Despite the IPO, Svitzer did not attract the level of investor interest that was anticipated. In light of this, APMH stated that delisting the company and returning it to private ownership would provide a more conducive environment for Svitzer’s ongoing growth and development.
APMH emphasized that expanding the business is crucial for Svitzer to maintain its competitive edge in an industry that is characterized by fragmentation and consolidation. Since its IPO, Svitzer’s share price has appreciated by 8.2%, reaching 216.4 Danish crowns. In contrast, APMH’s bid is set at 285 crowns, indicating a substantial premium that reflects APMH’s commitment to enhancing Svitzer’s growth potential moving forward.