Maersk bids farewell to towage unit Svitzer after more than 40 years
Danish shipping and logistics major A.P. Møller – Mærsk A/S (APMM) has decided to initiate the separation of its towage and marine services activities in Svitzer A/S through a demerger.
Svitzer, which has 430 vessels operating in 140+ ports and 25+ oil and gas terminals globally, has been part of the Maersk Group of companies for more than 40 years.
As part of the demerger, the shares in Svitzer A/S and its subsidiaries as well as certain other related assets and liabilities will be contributed by APMM to a new legal entity under the name of Svitzer Group A/S.
“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,” Kasper Nilaus, Svitzer CEO, commented.
“The announcement today signals an exciting new chapter for Svitzer, one that ensures our commitment to delivering efficient, reliable and safe towage and marine services to our valued customers is as strong and dynamic as ever.”
The shares of the new entity are expected to be admitted for trading and official listing on Nasdaq Copenhagen. The anticipated first day of trading for the shares of Svitzer Group on Nasdaq Copenhagen is April 30, 2024.
Subject to approval at the extraordinary general meeting of APMM, the shares in Svitzer Group will be distributed to APMM shareholders, who in addition to their existing shareholding in APMM, will become shareholders in Svitzer Group.
Specifically, the Board of Directors of APMM intends to propose a single share class structure for Svitzer Group with shares in Svitzer Group being distributed to the APMM shareholders pro-rata based on the nominal value of the shares held in APMM. It will be proposed that the APMM shareholders will receive one share in Svitzer Group per nominal APMM DKK 500 share and two shares in Svitzer Group per nominal APMM DKK 1,000 share.
The demerger and distribution of the Svitzer Group shares will be tax-exempt for Danish tax purposes. A.P. Møller Holding A/S, which holds around 41.5% of the total share capital in APMM, has agreed to a 360-days lockup of its expected shareholding in Svitzer Group, subject to certain customary exemptions.
Svitzer, which has a revenue of $839 million and EBITDA of $246 million in 2023, will continue to be headquartered in Copenhagen and operate under the Svitzer name.
Back in 1979, Maersk became a majority shareholder of Svitzer and acquired it shortly after.
The demerger move is part of APMM’s Global Integrator strategy. In recent years, the company has taken several steps to simplify its business and focus on integrated logistics. Throughout the process, it divested several business units.