Forth Ports out to ward off predator

Published on Saturday 20 March 2010 12:43

FORTH Ports will tomorrow provide the market with an update on the valuation of its considerable property assets as it prepares to defend itself against an unwanted takeover bid.

At its peak the portfolio, including Edinburgh's Ocean Terminal shopping centre, was valued at more than 400 million, although it had come down to 84m a year ago.

Mark McVicar, analyst at Nomura, is forecasting a pre-tax profit of 33m (down from 38m in 2008) and a flat total dividend for 2009 of 28.6p.

Forth Ports' board said it will meet members of the Northstream bid consortium shortly after its results announcement, but only in the would-be suitors' role as major shareholders, and not as part of any takeover talks. Forth has already turned down two bid approaches from the consortium that includes Peel Group and the infrastructure funds Arcus and RREEF. It said the 1,340p offer, valuing Forth at 612m significantly undervalued it. The shares closed at 1,390p, valuing Forth at 635m.

It is understood the meeting with Northstream will not involve opening Forth's books. The only due diligence the consortium can still conduct on the target at this stage is based on public information.

The markets are awaiting another offer from Northstream after it said it may raise its valuation. Sources say an offer would have to rise by 70m to about 685m to win the day.

Combined, the consortium's members own 27.4 per cent of Forth.