P&O to sell 50% of ABC to Eurotower for £68 million
P&O has conditionally agreed to sell 50% of the shares in its bulk shipping subsidiary Associated Bulk Carriers PLC to Eurotower Holdings SA.
Eurotower forms part of the SAMAMA Group (S/A Monegasque d’Administration Maritime et Aerienne) which is a private group of shipping companies with operations worldwide.
The ownership of Eurotower rests with a discretionary trust the primary beneficiaries of which are members of the Ofer family.
In addition, the responsibility for the commercial and technical management of ABC is being transferred to Zodiac Maritime Agencies Ltd of London (Zodiac), a long established ship management company which already manages many of the SAMAMA Group’s ships.
A number of ABC employees will join Zodiac.
P&O said the proceeds from the sale are expected to be approximately £68 million receivable in cash. The net debt on the P&O Group balance sheet will be reduced by approximately £208 million.
After adjusting for goodwill and other items there will be an overall reduction in the P&O Group net equity of approximately £62 million.
ABC operates a fleet of 22 capesize dry cargo vessels ranging in size from 114,000 to 211,000 deadweight tonnes with an average age of 7 years. The fleet will be pooled with the 9 capesize bulk carriers currently managed by Zodiac.
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