From public authority to major property developer behind Ocean terminal

Published on Monday 7 March 2011 15:44

Forth Ports has been the subject of frequent takeover speculation over the past decade as the value of its ports and property empire rose.

In 2000 the company was approached by an unnamed bidder - thought to be private equity house Duke Street Capital - with an approach valuing it at 750p a share or 357m.

The first formal bids for the company emerged in January last year when the Northstream consortium, made up of Arcus, Peel Ports Holdings and infrastructure fund RREEF, made a 1,285p a share approach. It was rejected.

Offers of 1,340p and 1,400p were also unanimously voted down by the Forth Ports board before the consortium walked away after institutional investors said that even a raised 1,500p bid would be too low.

Originally established as a public authority to manage six Scottish ports including Grangemouth and Leith, Forth Ports listed on the stock market in 1992 and embarked on a steady build-and-buy strategy which saw the Port of Tilbury on the Thames, the Port of Dundee and a terminal operation at Chatham in Kent added to its portfolio. Its redevelopment of large parts of Leith began in 1992 when planning consent was granted for areas around Victoria Dock and the Water of Leith, leading to the Scottish Government headquarters and the first residential development in the port at Rennie's Isle.

The group, which employs more than 1,100, was behind the development of the Ocean Terminal shopping centre and owns around 400 acres of development land around Edinburgh's waterfront.

It also runs a marine services operation and a renewable energy division which is seeking planning approval for onshore wind installations and biomass facilities in its Scottish ports.