London, 16 May, 2018
Park Partners has advised the Isle of Man Government on the acquisition of the IoM Steam Packet Company for £124 million to bring stability to the ownership of the Island’s lifeline ferry operations.
Treasury Minister Alfred Cannan MHK tabled a motion for the May sitting of Tynwald to approve the Government to commit £124 million to purchase 100% of MIOM Ltd, the parent company of the IoM Steam Packet Company.
The transaction follows extensive assessment by the Isle of Man Government and Park Partners of potential operating models and analysis of the Isle of Man’s current and future requirements, including port facilities and vessels, routes, seasonal demands, additional capacity for the TT period and financial issues.
The Isle of Man Government has been considering its options since Tynwald voted in July 2017 to reject the IoM Steam Packet’s revised offer of a new strategic sea services agreement to replace the existing Linkspan Agreement.
Confidential negotiations have taken place between the Government and MIOM Ltd and its current owners regarding a deal. Agreement has been reached on terms and conditions and the acquisition is now wholly unconditional, following approval by Tynwald Members on 16th May, 2018.
Treasury Minister Alfred Cannan MHK said: ‘We believe it is in the best interests of our people and our economy to take a controlling stake in the national ferry operation rather than commit the Island to another long-term agreement with an external provider.’
Jon Howells, Managing Director at Park Partners said: “This is an excellent outcome for both the company and the Isle of Man Government. It delivers strategic control of a vital asset for the Isle of Man at fair value to the public purse. We are pleased to have worked with the Isle of Man Government on this transaction and to have added another landmark transaction to our successful track record in the Shipping and the Maritime Services sectors.”
Jon Howells, Ed Matthews & Sven Garås advised the Isle of Man Treasury on the transaction.
Park Partners Ltd
Park Partners is an independent corporate finance firm providing the highest quality advice on M&A, capital raising, and restructuring. Based in London, it focuses on domestic and cross border transactions in the UK, Germany, Benelux, and Scandinavia and has particular experience in the shipping and maritime services, transportation & logistics, oil & gas, support services, retail, leisure and e-commerce sectors. For more information, visit www.parkpartnersltd.com.
Isle of Man Treasury
The Treasury is a department of the Isle of Man Government. For more information, visit www.gov.im/about-the-government/departments/the-treasury.
Isle of Man Steam Packet Company Ltd
The Isle of Man Steam packet Company is the oldest continually operating passenger shipping company in the world, having begun operations in 1830. The company which provides freight, passenger and vehicle services between the Isle of Man, UK and Ireland. For more information, visit www.steam-packet.com