Australian Fund Manager Buys Majority Stake in UK’s Largest Port Operator

IFM Investors, an Australia-based global fund manager with a focus on UK infrastructure, emerged as the winning bidder in the sale of Associated British Ports (ABP). The company, which was formed through a government privatization effort in the early 1980s, reportedly handles approximately a quarter of the UK’s seaborne trade.

The Financial Times had first reported in February that the Canada Pension Plan Investment Board and OMERS (Ontario Municipal Employees Retirement System) were planning to sell their stakes, which collectively represent approximately 64 percent ownership of ABP. In August, Bloomberg reported the final round of bidding had been narrowed to three investment fund managers, Apollo Global Management, KKR, and IFM Investors. India’s Adani Group had reportedly also expressed interest but was not identified as one of the finalists.

Terms of the deal were not reported, but Bloomberg cites sources saying ABP was valued at approximately £10 billion ($13.4 billion). Bloomberg calls the deal one of the largest in the UK this year.

“This transaction represents an attractive opportunity to realize the value of our long-term investment and recycle capital into new opportunities,” said James Bryce, Managing Director, Head of Infrastructure, CPP Investments.

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