ABP SELLS PROPERTY INTERESTS FOR £33 MILLION AND EXTENDS SHARE REPURCHASE PROGRAMME BY £30 MILLION
Associated British Ports Holdings PLC (ABP), the UK’s largest port operator, todayannounces that it has sold its interests in The Cardiff Bay Partnership and the Caspian Point office development in Cardiff Bay to Norwich Union Life & Pensions Limited (Norwich Union) for a cash consideration of £33 million.In addition, ABP has granted Norwich Union an option to acquire a further 2.5 hectares (6.2 acres) of land in Cardiff Bay at a base option price of £3 million.
The Cardiff Bay Partnership, in which Norwich Union has a 55 per cent stake and ABP a 45 per cent stake, was created in October 2000 and is engaged in the ownership, letting and management of office properties in Cardiff Bay.Caspian Point, which is wholly owned by ABP, is a 9,000 square metre (98,000 square feet) office development in Cardiff Bay.
For the year ended 31 December 2003, The Cardiff Bay Partnership and the Caspian Point office development contributed £1.2 million to the group’s profit before taxation and £2.9 million to its turnover including share of associated undertakings.As at 31 December 2003, the net book value of the group’s interest in The Cardiff Bay Partnership, the Caspian Point office development and the 2.5 hectares (6.2 acres) of land under option, in the group financial statements, was £36 million, which equals the base sale price of these assets to Norwich Union.
The sale of The Cardiff Bay Partnership and the Caspian Point office development brings the total proceeds from disposals of non-core assets since 1 January 2000 to £296 million, and is a continuation of ABP’s strategy of disposing of non-core assets, leaving the group to focus on operating ports and value-added businesses within those ports.
ABP will now extend the £100 million share repurchase programme, announced on 20 April 2004, by a further £30 million.
Commenting on this latest transaction, Bo Lerenius, Group Chief Executive of ABP, said:
“This is a further example of the group successfully executing its strategy of realising value from non-core assets for the benefit of shareholders, allowing us to focus on operating ports and value-added businesses within those ports.”
Jon Ashcroft for Norwich Union said:
“Cardiff Bay has for many years been the focus for inward investment and regeneration in the city, with The Cardiff Bay Partnership at the heart of this activity.We are delighted to be taking full ownership of the Partnership, to develop the Bay going forward.We are confident of encouraging new occupiers and investment into this prestigious commercial and cultural hub of Wales.”
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