P&O and Royal Nedlloyd N.V. ("Nedlloyd") announce that agreement has been
reached for Nedlloyd to acquire P&O's 50% interest in P&O Nedlloyd
Line Limited ("PONL"). Nedlloyd will be renamed Royal P&O Nedlloyd N.V.
("Royal P&O Nedlloyd") upon completion of the transaction.
As consideration, P&O will receive approximately EUR215 million (GBP147
million) cash and a 25% interest in Royal P&O Nedlloyd post completion of the
rights issue referred to below. The total consideration has a value of
approximately EUR485 million (GBP331 million), based on Royal Nedlloyd's
share price at closing of business on 30 January 2004. P&O has agreed to
retain its 25% equity stake in Royal P&O Nedlloyd for a minimum of six months
following the transaction.
Nedlloyd proposes to fund the cash consideration from an approximately
EUR190 million rights issue with the balance being paid from existing cash
resources. The rights issue is fully underwritten by a syndicate of banks
subject to, amongst other conditions, satisfactory completion of due
The transaction is subject to approval by Nedlloyd's and P&O's
shareholders, completion of the rights issue, regulatory approvals and
admission of the rights issue shares and the shares that are to be issued to
P&O for listing on Euronext Amsterdam.
It remains the intention of Nedlloyd to dispose of its 50% interest in
Martinair as previously indicated to the market.