P & O To Pick 20 Per Cent In Gip

Global major P&O Australia Ports will be picking up a 20 per cent stake for $4million in Italian company Gruppo Investimenti Portuali SpA (GIP).

The two companies have decided to go ahead with the deal subject to due diligence, according to a release issued by P&O Ports India here. The stake is being picked up through an issue of additional shares.

P&O has the option of hiking its stake to 50 per cent next year. The acquisition marks the entry of P&O Ports into the growing opportunities in the Mediterranean region, the release added. Gruppo Investimenti Portuali is a major player in the terminal and intermodal businesses. It recently won a 30-year contract to operate a new transhipment facility at Cagliari in Sardinia.The Italian government has invested about $750 million to develop this facility which has the potential of becoming one of the leading hub ports in the region.

"Gruppo Investimenti Portuali offers an opportunity for P&O to enter the fast growing Mediterranean container terminal business," according to Richard Setchell, managing director P&O. GIP was formed in 1992 by three leading Italian shipping and transport organisations --Finsca, Final and Unagim--to privatise the container terminal at Genoa. GIP is also the largest shareholder in the Ge. Ma.C, Naples which carries out container handling activities through a joint venture, Terminal Flavio Gioia SpA.

GIP's intermodal arm is Logtainer which is active in container transportation in Genoa, Milan, Rubiera and Ravenna.