Adsteam In $186m Port Deal
Sydney Morning Herald
Wednesday October 17, 2001
A consortium including listed tug boat company Adsteam Marine has agreed to pay $186 million for Ports Corp South Australia in the first sale of a capital city ports business.
The Flinders Ports consortium has won a 99-year lease over the business, which includes seven ports at Port Adelaide, Port Lincoln, Wallaroo, Port Pirie, Port Giles, Thevenard and Klein Point.
Adsteam, which has a 14 per cent stake in Flinders acquired for $10 million, will operate the ports in a joint venture with French multinational Groupe Egis, the owner of a 7.15 per cent interest in the consortium.
Adsteam managing director David Ryan acknowledged the company's outlay was only small but said the move would improve its port management ability and would create other opportunities over time. However, he said he wasn't aware of any further port privatisations on the horizon.
``In the grand scheme of things this is a relatively small investment but it is more about solidifying our position in all things in, and surrounding, ports."
Mr Ryan said Adsteam would seek to make the ports more efficient as ``the more successful the port is, the more successful our own businesses will be".
The investment will make a small contribution to earnings per share in the June 2002 year. He declined to comment on the terms of the deal between Adsteam, Groupe Egis and Flinders.
As part of the sale contract, Flinders Ports, which won over the Ausbulk/Forth Ports pairing, will spend $60 million on capital works at the ports, including building a new grain berth, dredging and upgrading wharves.
The consortium said it had sufficient debt and equity available to complete both the acquisition and capital works without further recourse to shareholders.
Other consortium members are Motor Trades Association of Australia Superannuation Fund (35.7 per cent), Galaxy S.ar.l (35.7), and equipsuper (7.15).
Shares in Adsteam Marine ended 1c higher at $2.14.
© 2001 Sydney Morning Herald
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