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P&O reduces its stake in P&O Nedlloyd

5th February 2004

  

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Shipping companies Royal Nedlloyd and The Peninsular & Oriental Steam (P&O) announced yesterday that agreement has been reached for Nedlloyd to take full ownership of P&O Nedlloyd Container Line (P&O Nedlloyd).

Royal Nedlloyd will be renamed Royal P&O Nedlloyd upon completion of the transaction.

P&O said it would contribute its current 50% stake in P&O Nedlloyd to Nedlloyd for consideration of €215-million cash and a 25% interest in Nedlloyd, subject to satisfaction of certain conditions.

The total consideration has a value of €485-million, based on Nedlloyd’s share price at closing of business on January 30, subject to a possible adjustment of the value of Martinair.

P&O has agreed to retain its 25% equity stake in Royal P&O Nedlloyd for a minimum of six months following the transaction.

P&O Nedlloyd effectively becomes independently listed, and will reportedly benefit from increased strategic and financial flexibility to strengthen its position as one of the leading global container shipping companies and Royal P&O Nedlloyd will have a one-tier board and one class of share capital.

Royal P&O Nedlloyd will consolidate P&O Nedlloyd as a 100% subsidiary.

The new company stated that the transaction would have no impact on P&O Nedlloyd’s business or on its employees or day-to-day operations and services provided to its customers. P&O Nedlloyd’s headquarters will continue to be in London, while Royal P&O Nedlloyd will have its headquarters in Rotterdam.

The board of Royal P&O Nedlloyd will consist of two executive directors and seven non-executive directors, which will comprise the CEO, Philip Green, and a CFO, currently being recruited.

“Through this one-step transformation we will be able to meet the objective of effectively creating an independent listing for P&O Nedlloyd and we strongly recommend to our shareholders to support this transaction,” said Nedlloyd CEO Haddo Meijer.
 

Edited by laurian clemence

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