The Northstream Consortium, driven by Peel Group (corporate parent of Peel Ports and Clydeport), has, with its partners, Arcus and RREEF, abandoned its bid to take over Forth Ports. Forth is the owner of the ports of Leith, Grangemouth, Rosyth and Dundee, among many others, including London’s Tilbury.
Had the bid not been seen off by a vigorous Forth Ports’ defence, it would have seen the major east and west coast ports of Scotland’s business engine of the Central Belt owned by a single company, with Forth Ports also taken into private ownership and off the Stock Exchange.
This would have been an unacceptable national commercial stranglehold by a private interest, affecting ports’ operations and waterside property development in key areas of Scotland.
Such a situation would have been completely unacceptable, particularly in the light of the corporate behaviour of Peel Ports and Clydeport, recently seen under the searchlight in the case of the Loch Striven community and the ships laid up literally on their doorstep.
Clydeport made no contact, before, during and, now, approaching after, in informing or consulting the local community. Peel Ports refused to intervene, often even to respond to serious communications from serious sources.
Clydeport’s exchanges, even with Government Ministers (which we published) were jaw-droppingly impertinent and arrogant to say the very least.
The thought of the neck of Scotland held in the grip of what would have become a behemoth, to whom the words ‘corporate social responsibility’ make as much sense as Pinky and Perky on speed, was intolerable.
Anyhow, with the deadline imposed on Northstream by the Takeover Panel now approaching fast, requiring the consortium to make an acceptable bid or walk away for at least six months, it has chosen to walk. This does not mean that it won’t be back so vigilance is very necessary. This is one raider to be repelled at all costs.
The consortium has said that ‘economic uncertainty’ leaves it unable to better its last – rejected – proposal of £640 million.
Behind the scenes, Peel’s spinners were saying that the abandonent was down to the consortium being refused access to due diligence. Interestingly, the specific information on this was that they couldn’t get the bitty gritty on Forth Ports’ property assets.
We have, from the outset, focused on property as John Whittaker’s key driver in snatching up a series of ports and terminals across Great Britain and Ireland. Whittaker is the ageing and reclusive but sharp entrepreneur who lives at Billown mansion in the Isle of Man, a conveniently undemanding tax regime. As the New Yorker Leona Helmsley famously said, Only the little people pay tax’.
Whittaker made his money in property and that is the market to which he has a visceral attachment. The slump in property values with the recession has made Forth and its property portfolio particularly attractive in this quarter.
Indeed, during the three month-long shadow boxing of the Northstream move on Forth, the consortium had offered to bid for specific divisions of Forth and, guess what, property was up there.
The main magnet is the development of Edinburgh’s waterfront which, in the next 30 years, is projected to see 16,000 homes built, grouped in nine urban villages.
Forth’s ownership of Tilbury is additionally attractive, with property development potential reaching long into the future, kick-started by the 2010 London Olympics.
For now, Peel Group is off the scene and if property prices start a strong recovery, they may not be back – yet.
