P&O to 'sell cold storage division for £200m'

Ports and ferries group P&O was today reported to be preparing for the £200m (€291m) auction of its refrigerated warehousing division, Cold Logistics.

The 49-year-old business is not thought to be core to P&O, following a major restructuring that recently saw it sell its 25% stake in container shipping line P&O Nedlloyd and carry out refinancing.

The Sunday Times said proceeds from any sale would enable the company to plug a hole in its pension scheme, as well as invest in its thriving ports business.

Meanwhile, a separate newspaper report said P&O was reviewing its team of advisers as it prepares its defences for an expected takeover bid.

The Mail on Sunday said rumours were circulating in the City that Singapore state investment agency Temasek had built up its holding in P&O ahead of an offer. It already owns Neptune Orient Line, a container shipping business.

According to today's report, P&O has appointed the Australian office of investment bank UBS to oversee the disposal of Cold Logistics.

The division, which operates out of Argentina, Australia, New Zealand and the United States, is one of the world's three largest refrigerated warehouse operators in the world with more than 55 facilities and 2,000 employees.

The disposal would mark the continuation of a trend that has transformed P&O from a conglomerate to a specialists ports and ferries company.