Svitzer board recommends A P Moller buy-out

A P Moller Holding made the announcement through through its subsidiary APMH Invest, adding that the Nasdaq listing of Svitzer a year ago has not ‘resulted in the expected investor interest’.

“The listing has thus not created the desired platform for growth, which is essential for maintaining Svitzer’s market position in a competitive and fragmented industry undergoing consolidation,” said A P Moller. ”Over time, this may limit Svitzer’s ability to pursue opportunities in the market.”

A P Moller Holding already owns about 47% of Svitzer’s share capital and the Svitzer board members recommended that Svitzer’s shareholders accept the offer.

The offer is subject to customary conditions including A P Moller Holding owning or having received valid acceptance from shareholders with respect to shares representing more than 90% of the total shares in Svitzer, after which A P Moller will initiate a compulsory acquisition of any remaining shares and de-list the company.

“Since Svitzer was listed, the company has consistently delivered results above expectations,” said A P Moller Holding CFO Martin Larsen. “However, we have not seen this reflected in the valuation of the share, which means that the listing has not offered a foundation from which Svitzer can grow.

”We therefore believe that Svitzer is better supported through private ownership and that, with the financial support of A P Moller Holding, the company will be better positioned to strengthen its market position and capitalize on the opportunities in the market.

“We see it as our role, through active ownership, to create the best conditions and structures for our portfolio companies to develop positively. We aim to secure Svitzer’s market position and growth and is offering an attractive price above the highest historical closing price and well above current trading, reflecting Svitzer’s strong performance.”