Ferry operator P&O said today it was to sell half of its bulk shipping subsidiary Associated Bulk Carriers (ABC) to a private consortium of shipping companies.
The sale is to Eurotower Holdings, part of the Samama private group of shipping companies.
At the same time, responsibility for the commercial and technical management of the subsidiary is being transferred to Zodiac Maritime Agencies, a private London-based shipping management company.
The sale is expected to reap about £68 million for P&O, while the company's debt is expected to be reduced by £208 million. London-based ABC employs 75 people, a quarter of which will transfer over to Zodiac.
The rest will either be found alternative work within P&O or lose their jobs.
The deal is expected to be completed early next year.
ABC operates a fleet of 22 cargo vessels ranging in size from 114,000 to 211,000 deadweight tonnes, with an average age of seven years.
Sir Bruce MacPhail, managing director of P&O, said of the dual transaction: "This partnership will enable P&O to manage the transition out of what is a now a non-core business for the group as we move forward."
In October, P&O spun off its cruises division P&O Princess Cruises as a separately listed company on the London Stock Exchange.
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