The IPO was intended to attract investors and bring fresh money into Svitzer’s coffers. Now majority shareholder A.P. Møller is making a U-turn.
The tugboat shipping company Svitzer has only been listed on the stock exchange since April last year. However, the plan of the Danish AP Møller Holding to acquire fresh investor capital for growth plans in this way has apparently failed. The Danish holding company now wants to reprivatize the company.
Svitzer, founded in 1833, is one of the world’s largest players in the towage market and has a fleet of over 450 ships in more than 140 ports. Currently, the Maersk parent company is already the largest shareholder with 47%. Following a share buy-back, the stake is to be increased to up to 60%, according to reports.
Svitzer has consistently delivered results that have exceeded expectations. However, this was not reflected in the share price. “The IPO has not created the desired growth platform to maintain or expand Svitzer’s market position in a highly competitive and fragmented industry,” the statement explains. This is to be achieved more successfully in future under the direction of A.P. Møller.
Svitzer’s market capitalization is currently DKK 6.9 billion ($998 million). The holding company is offering DKK 285 per share, which is a premium of over 31% compared to yesterday’s closing price.
There are already commitments from shareholders to sell shares worth 14%. In total, the buyback of all outstanding 53% of the shares would cost just under 700 million dollars, it is said. If the threshold of 90% is reached, the remaining shares can be bought out.
