London-listed Bermuda investment company Ocean Wilsons has sold off its Brazilian arm to Mediterranean Shipping Company (MSC) for 4.32bn Brazilian real (£590m).
Wilson Sons, which is currently one of the largest port and maritime logistics operators in Brazil, is currently majority owned by Ocean Wilsons with a 56.5 per cent interest.
It is also one of the oldest private enterprises in Brazil, being set up in Salvador by two Scottish brothers in 1837.
Speculation of the sale has been rife after last month, Ocean Wilsons confirmed it was in discussion with I Squared Capital Advisers to offload its stake in Wilson Sons.
The transaction will see Ocean Wilsons bringing in more than its entire market cap in cash, as it is currently valued at £528m by the London Stock Exchange. It is expected to be complete during the second half of next year.
However, the firm did not that it expects to spend between 15 per cent and 22.5 per cent of that on Brazilian capital gains tax, leaving it with net cash proceeds of £455m.
In August, the company reported strong revenue growth over the first six months of the year, though profit after tax dropped by 20 per cent to £30m.
“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,” said Ocean Wilsons chair Caroline Foulger.
“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”.