Cape Town - Safmarine and Rennies Holdings (Safren) had sold the Safmarine container shipping business to AP Moller, a Danish conglomerate, for $240 million subject to shareholders' approval, AP Moller said yesterday.
AP Moller directors said the company would also assume responsibility for $115 million of Safmarine's debt.
They said Safmarine Container Lines (SCL) would maintain its own identity in competition with the conglomerate's Maersk Line and its ships would continue to sail under the South African flag. They had no plans for staff cuts at SCL.
The directors of ING Barings, who arranged the sale, said in a cautionary announcement to shareholders that they would enter into discussions with interested parties on the sale of Safmarine's remaining activities.
These are Unicool, the reefer operation; SafOre and SafBulk, the bulk shipping operations; and shareholdings in Pentow Marine and Unicorn Lines.
Unicool, the world's largest conventional reefer operator, is a joint venture with Leif Hoegh and Company of Norway. Each partner has a 50 percent share.
SafOre and SafBulk operate fleets of bulk carriers worldwide.
Pentow, a 50-50 joint venture with Murray & Roberts Holdings, provides specialist services.
Safmarine owns 40 percent of Unicorn and Grindrod Unicorn Group the remaining 60 percent.
ING Barings said the sale of the container liner business was a further stage in the unbundling of Safren.
In aggregate, this sale, together with the January sale of Safair, the aviation arm, to Imperial Holdings, and that of the 75 percent interest in the Rennies Group, had realised about R2,2 billion, less a tax liability of R310 million.