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Recently, Australian infrastructure investment giant IFM Investors agreed to acquire a 63.9% controlling stake in United Ports Corporation (ABP) in the UK, with a valuation of approximately £ 10 billion and an expected payback period of 21 years. Do you think this is a good deal? #Port # Trading # Terminal Operators
IFM Investors, an Australian investment management company, has reached an agreement,We will acquire Associated British Ports,ABP (abbreviated as ABP) 639% equity.
ABP is the largest port operator in the UK, responsible for approximately a quarter of the country's maritime trade volume. It operates 21 ports covering major coastal hubs in England, Scotland, and Wales, including the UK's largest cargo throughput port of Birmingham and second largest container port, as well as the core port of Southampton for automotive roll on/roll off exports.
The ABP2025 annual report shows that in 2025, the group's revenue was 820 million pounds, a year-on-year increase of 4.6%; EBITDA of 47 million pounds, a year-on-year increase of 10.1%, with a profit margin close to 58%; Operating profit was 590 million pounds, a year-on-year increase of 7.5%. worthIt should be noted that out of the £ 590 million operating profit, £ 240 million came from the fair value revaluation of investment properties, accounting for over 40%. Simply put, it means that land prices in the UK have risen.
At present, ABPThe overall valuation is approximately 10 billion pounds.The average valuation multiple for global listed port operators is generally around 10 times EBITDA. Previously, Changhe sold 43 port assets worldwide for a transaction price of $22.8 billion, corresponding to approximately 13-13.5 times EBITDA. And this time ABP is valued at 10 billion pounds, with a valuation multiple that has skyrocketed to 21 times, which means it will take 21 years to recoup its investment.
The seller holds shares in CPP Investments and OMERS, a Canadian pension fund。These two Canadian investment institutions announced their intention to sell their ABP shares in February this year. They will sell their 33.9% and 30% equity holdings, respectively. Hermes, the asset management company that holds 6% of ABP shares, was also considering exiting at the time.
The high valuation of ABP has narrowed the range of potential buyers, and few port operators have the strength to bid for such a large amount of equity. However, according to media reports, private equity groups Apollo, KKR, and India's Adani Group have previously expressed their intention to acquire.
IFM Investors has a total asset management scale of approximately £ 157 billion and has established a presence in the global ports and terminals sectorhaveNew South Wales Port Group, Brisbane Port, Baltic Hub Container Terminal, Türkiye Mersin International Port and other port projectsEquity. Kyle Mangini, Global Infrastructure Head at IFM Investors, said: 'We are pleased to have reached this agreement for a fund managed by IFM to acquire a majority stake in ABP, the largest port group in the UK.'. ABP's assets are strategically located and serve multiple important trade and industrial zones in the UK. We look forward to continuing to support ABP's infrastructure construction and business operation development with IFM's long-term investment philosophy and rich experience in ports and other core infrastructure assets
