Orient Overseas (International) Ltd (OOIL), held by the family of Tung Chee-hwa, has shortlisted six bidders who may pay up to US$1.5 billion for its North American port assets, according to industry sources.
OOIL, Hong Kong's largest shipping company, is selling two port facilities in Vancouver, Canada, and terminals at the ports of New York and New Jersey.
The preferred bidders, which were separated into 'strategic' and 'financial' camps, include US-based port owners Stevedoring Services of America (SSA) and Marine Terminals Corp, as well as divisions of Australia's Macquarie Group, Goldman Sachs, Deutsche Bank and Canadian private equity firm Brookfield Asset Management.
'We have moved into the second round of bidding with a handful of potentials and we hope to have the process finalised by the end of the year,' OOIL spokesman Stanley Shen said yesterday.
He would not confirm the names or the number of companies on the short list for the deal, which banking sources said may raise US$1.2 billion to US$1.5 billion.
'The lower end of the valuation is probably where OOIL's final price will end up, about 15 to 20 times [earnings before interest, tax and depreciation],' said a banker close to the deal.
