Ocean Wilsons, the London-listed Bermuda investment company, has sold its Brazilian subsidiary to Mediterranean Shipping Company (MSC) for 4.32bn Brazilian real (£590m). The subsidiary, Wilson Sons, is one of Brazil's largest port and maritime logistics operators and is majority-owned by Ocean Wilsons with a 56.5% stake.
Established in Salvador by two Scottish brothers in 1837, it is also one of Brazil's oldest private enterprises. The sale follows speculation last month when Ocean Wilsons confirmed discussions with I Squared Capital Advisers about selling its stake in Wilson Sons, as reported by .
The deal will bring in more cash than Ocean Wilsons' entire market cap, currently valued at £528m by the London Stock Exchange, and is expected to be completed in the second half of next year. However, the firm anticipates spending between 15% and 22.5% of the proceeds on Brazilian capital gains tax, leaving net cash proceeds of £455m.
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Despite reporting strong revenue growth in the first half of the year, the company's profit after tax fell by 20% to £30m. Ocean Wilsons chair Caroline Foulger said: "This transaction represents the successful realisation of our long-term investment in Wilson Sons, demonstrating our ability to identify opportunities to create significant value for our shareholders,".
"Our strategy has always been focused on delivering enhanced long-term value to our shareholders by carefully balancing investment risks and avoiding the distractions of short-term market cycles. This sale aligns with our purpose and will allow us to concentrate on developing the business through sustainable profitable growth."
"Since our initial investment, Wilson Sons has demonstrated significant financial growth and is today the largest integrated port and maritime logistics operator in Brazil."
"The board believes that it is a compelling time to realise its investment. This is an exciting time for Ocean Wilsons, and we remain committed to maximising shareholder value through strategic decision-making and disciplined investment growth".