PD Ports attracts second approach

A takeover of British ports operator PD Ports was under threat today following the emergence of a second approach from Australia.

The interest – reportedly from Sydney-based infrastructure firm Babcock & Brown – comes a week after PD, whose PD Teesport site is Britain’s second-largest port by volume, recommended an offer from Australian consortium Endeavour.

The Financial Times said the offer was pitched just higher than Endeavour’s 140.5p per share bid, valuing PD at £246m (€364m).

PD confirmed today it had received an approach from a further party, but said the party was conducting due diligence and that it was not possible to say whether the approach would result in a further offer being made. It did not reveal the identity of the second potential bidder.

The FT report said PD received the approach just before it recommended the Endeavour consortium – made up by private equity group 3i, Australian financial services firm, Challenger and Australian fund manager Industry Funds Management.

The Endeavour offer, which includes a pledge to pay shareholders a 1.5p dividend was 26% above the PD’s value when news of a potential takeover offer first broke in October.

As well as PD Teesport, the company runs a port services arm with operations in warehousing, distribution and freight forwarding from several UK locations.

There is also PD Truck & Van, a Mercedes-Benz commercial vehicles dealer operating as H&L Garages in Lincolnshire and Yorkshire.

The company only floated on the stock market in July 2004 after Japanese group Nikko sold the business that it had acquired as part of a £507m (€750m) takeover of Powell Duffryn in 2000.

PD shares rose 5% to 147p today.