Svitzer chief executive Kasper Nilaus calls the Maersk decision "an exciting new chapter" after Svitzer’s 40-year tenure with Maersk
Maersk’s statement on the demerger and creation of a new company, Svitzer Group, that will be listed on the Nasdaq Copenhagen stock exchange, laid out the rationale and the plan for the move.
The reason for the move, according to Maersk, is the business’ desire to "simplify" and "focus on integrated logistics".
In its quarterly earnings report, Mr Clerc cited the pandemic and the current Red Sea "crisis" as temporary but important reminders that "emphasise the need for supply chain resilience".
"Eventually, the oversupply in shipping capacity will lead to price pressure and impact our results," he said, noting, "Maersk’s path toward integrated logistics is the right choice for our customers to effectively manage these challenges."
Maersk said it had "evaluated the different options for Svitzer" and concluded that "Svitzer as a stand-alone listed entity is the best option for the company and for long-term value creation for Maersk shareholders, offering them the possibility to participate in the future growth of a global leader within towage with attractive development prospects".
With the demerger being tax-exempt in Denmark, Maersk’s plan will be, "on or around 22 March 2024", for the board of directors to propose the demerger for approval by Maersk shareholders at an extraordinary general meeting. The meeting is expected to be held on 26 April 2024. If approved at the extraordinary general meeting, the shares in Svitzer Group will be distributed to Maersk shareholders, "who in addition to their existing shareholding in APMM, will become shareholders in Svitzer Group".
According to Maersk, its board of directors will propose a single share class structure for the new Svitzer Group with shares in Svitzer Group being distributed to the APMM shareholders "prorata based on the nominal value of the shares held in [Maersk]".
The Maersk family holding company AP Moller Holding holds more than 40% of the shares in the currently combined companies and has agreed not to sell its shares in the new Svitzer Group for 360 days after approval of the demerger.
The anticipated first day of trading and official listing for the shares of Svitzer Group on Nasdaq Copenhagen is 30 April 2024.
Current Svitzer chief executive Kasper Friis Nilaus and chief financial officer Knud Winkler will serve as the executive management team in the future listed company, Svitzer Group. The new board of directors of Svitzer consists of chair Morten H Engelstoft, vice chair Robert M Uggla, Christine Morris, and Peter Wikström, who will be proposed as members of the board of directors in Svitzer Group with effect from completion of the demerger on 26 April 2024, along with "one or two additional independent candidates to join the board of directors of Svitzer Group at its annual general meeting in 2025," Maersk said.
Svitzer will continue to be headquartered in Copenhagen and operate under the Svitzer name. Svitzer plans to hold a day of presentations in March for investors.
Mr Nilaus said, “We were established by Emil Z Svitzer in 1833 to prevent the loss of life and capital at sea. We have built on that legacy over many years and are widely recognised within the maritime and shipping sector as a trusted partner.”
“The announcement today signals an exciting new chapter for Svitzer, one that ensures [that] our commitment to delivering efficient, reliable and safe towage and marine services to our valued customers is as strong and dynamic as ever.”
Svitzer has been part of the Maersk Group of companies for more than 40 years. In 1979 Maersk became a majority shareholder of Svitzer and acquired it shortly after.
The 27th International Tug & Salvage Convention, Exhibition & Awards will be held in association with Caterpillar in Dubai, UAE, 21-23 May 2024. Use this link for more details of this industry event and the associated social and networking opportunities; and this link to book your ticket for the exhibition, social gatherings and awards night.
© 2023 Riviera Maritime Media Ltd.