Britain\'s oldest port operator is up for sale in a deal valued at more than $2.8bn
Brookfield Asset Management has launched the sale of its UK ports group in a deal that could value the UK's oldest ports operator at more than £2 billion ($2.8 billion), according to people familiar with the matter, Bloomberg reported.
The Canadian asset manager is working with advisers and has approached potential bidders, the people said. They spoke on the condition of anonymity because the matter is not public. Brookfield expects to complete the sale of the ports group by the end of the year and the business is likely to attract financial and strategic investors, people familiar with the matter said.
The talks are still at an early stage and no final agreement has been reached on the timing of any deal, the people said. A representative for Brookfield declined to comment.
Capitally-rich infrastructure investors are planning to sell these assets, seeking the goal of providing long-term, stable and predictable returns. Infrastructure deals were a bright spot during last year's outbreak, covering everything from oil pipelines to telecoms fibre-optic cables and towers, and the pace of deals continues through 2021.
In May, KKR & Co. agreed to buy UK-listed infrastructure company John Laing Group PLC for about GBP 2 billion, while Ontario Teachers' Pension Plan (OTPP), one of Canada's largest public-sector pension managers, plans to double its infrastructure investments over the next five years.
The Ports Group, based in Middlesbrough, northeast England, has more than 1,300 employees and operates mainly on the east coast of Britain, according to its website. It can lease land near ports under long-term agreements, and it has permanent rights to manage a river system and collect fees from those who cross it.
For Brookfield, a sale of the company would follow a string of recent deals in Europe. Last month, a subsidiary of the investment group agreed to buy the Modulaire Group, a European designer of modular workspaces backed by TDR Capital, for about $5 billion. Brookfield is also considering selling Green Energy, a British biofuel supplier, Bloomberg reported in May.
