OSLO (Reuters) – Denmark’s A.P. Moller Holding (APMH) said on Wednesday it has made an cash offer of 9 billion Danish crowns ($1.30 billion) for towage and marine service provider Svitzer, a 31.7% premium to Tuesday’s closing share price in Copenhagen.
APMH, which spun off Svitzer in April of last year in an initial public offering, already held 47% of the shares before the bid, which it said was unanimously recommended by the towage company’s independent board members.
APMH controls Danish shipping giant A.P. Moller-Maersk.
The stock market listing had not resulted in the expected investor interest, and a delisting and private ownership will better support Svitzer’s continued growth, APMH said in a statement.
Growing the business is essential for maintaining Svitzer’s market position in a competitive and fragmented industry undergoing consolidation, it added.
Svitzer’s share price has risen by 8.2% since its IPO to 216.4 Danish crowns, while APMH’s bid is for 285 crowns.
($1 = 6.9150 Danish crowns)
(Reporting by Terje Solsvik, editing by Terje Solsvik)
