The Maersk billionaire family offered to buy Svitzer Group A/S in a deal valuing the tug boat operator at about 9 billion kroner ($1.3 billion), just one year after it had listed on the stock market.
APMH Invest A/S, the investment arm of the family, made an all-cash offer to buy the 53% of Svitzer it doesn’t already own, at 285 kroner apiece, according to a statement. That represented a premium of 32% from April 1’s close and the shares jumped, trading just below the offer level at 11:51 a.m. in Copenhagen on April 2.
Svitzer was spun off from A.P. Moller-Maersk A/S about a year ago, and the shares had lost about 8% since the listing on Nasdaq Copenhagen before April 2. The Danish marine service firm has been part of the Maersk Group of companies for more than 40 years, after Maersk became a majority shareholder in 1979 and acquired it shortly after.
APMH Invest said it “doesn’t believe that the listing has resulted in the expected investor interest, and that a delisting and private ownership will better support Svitzer’s continued growth.”
Svitzer’s board said it recommends the offer. Chairman Morten Engelstoft, who has held executive positions at various Maersk companies in a career spanning almost four decades, said Svitzer had obtained an independent fairness opinion on the offer and that it was important for him to stress that all shareholders will be created equally.
The Maersk family company “will be a strong financial owner for Svitzer,” he said in an interview. “It has good strategic insight into the company and a deep level of knowledge about it, so I’m convinced it can help Svitzer on development and growth.”
APMH Invest said it “considers itself a long-term investor in Svitzer” and has no intention to sell or dispose of any shares, according to the offer document. Investors controlling about 61% of Svitzer’s share capital support the deal, it said.
APMH Invest is controlled by A.P. Moller Holding A/S, which has investments across several companies and sectors, including the world’s second largest shipping line, A.P. Moller-Maersk. It also owns 21% of Danske Bank A/S, according to its website. It has more than 800 billion kroner in total assets as is controlled by Robert Maersk Uggla.
