P&O reduces its interest in P&O Nedlloyd

Royal Nedlloyd N.V. ("Nedlloyd") and The Peninsular & Oriental Steam Navigation Company ("P&O") announced today that an agreement was reached for Nedlloyd to take full ownership of P&O Nedlloyd Container Line Limited ("P&O Nedlloyd"). Royal Nedlloyd N.V. will be renamed Royal P&O Nedlloyd N.V. ("Royal P&O Nedlloyd").
P&O will contribute its current 50% stake in P&O Nedlloyd to Nedlloyd for consideration of approximately 215 million cash and a 25% interest in Nedlloyd, subject to certain conditions. The total consideration has a value of approximately 485 million.
Nedlloyd will, subject to approval at the Extraordinary General Meeting ("EGM") referred to below, pay a dividend of 1.00 per ordinary share to be charged to reserves in place of a dividend that would have become payable in May 2004.
P&O agreed to retain its 25% equity stake in Royal P&O Nedlloyd for a minimum of six months following the transaction.
The transaction is subject to approval by Nedlloyd's and P&O's shareholders.
It remains the intention of Nedlloyd to dispose of its 50% interest in Martinair as previously indicated.
Royal P&O Nedlloyd will consolidate P&O Nedlloyd as a subsidiary, It will continue to operate under its trade name 'P&O Nedlloyd'. The transaction will not impact P&O Nedlloyd's business, employees, or day-to-day operations and services. P&O Nedlloyd's headquarters will continue in London and while Royal P&O Nedlloyd headquarters will be in Rotterdam.