After recent speculation, Forth Ports has finally confirmed it has received another takeover approach, sending its shares more than 5% higher.
The bidder is Arcus European Infrastructure Fund, which was part of a consortium which last year failed with a £14 a share offer for the owner of the Grangemouth, Rosyth and Tilbury docks. This time Arcus is offering £16.30 a share plus a 20p dividend, somewhat less than the rumours of a near £20 offer doing the rounds at the end of last week. The bid values Forth - up 81p at £16.04 on the news - at around £745m.
Arcus owns 23.5% of Forth as a legacy of the failed bid, and Forth has opened its books to let Arcus do due diligence. Analyst Gerald Khoo at Arbuthnot Securities said:
Forth Ports' board consistently refused to open the books [to the consortium bidders] for due diligence [so] we believe this gives an indication that the board considers Arcus' indicated price to be sufficiently high to not dismiss it out of hand.
Given Arcus' substantial pre-existing shareholding we consider it unlikely that an alternative suitor will emerge.
