Macquarie buys Steam Packet

SYDNEY - Macquarie Bank, Australia's largest investment bank, says it has bought the Isle of Man Steam Packet Group, the world's oldest passenger shipping company, for 225 million ($575 million).

The ferry operation was purchased from Montagu Private Equity, Sydney-based Macquarie said yesterday. Steam Packet has an agreement with the Isle of Man that gives it exclusive access to the island's main port to 2020.

Macquarie, which is considering a bid for London Stock Exchange, said it might transfer the business to an investment fund in the next six-to-12 months. Steam Packet is "an attractive investment that fits with Macquarie's strategy of investing in essential service infrastructure business," said the bank's chief financial officer Greg Ward.

Macquarie buys stakes in airports, toll roads and other infrastructure, which it bundles into funds. It earns fees for managing these and bonuses if shares beat benchmark indexes. It has A$94 billion ($101 billion) under management.

In June, Macquarie Capital Alliance Group, an Australian investment fund, and Macquarie Bank agreed to buy a multi-media unit of British Broadcasting Corp for 166 million.

Last December, Macquarie Communications Infrastructure Group led a group that bought NTL's UK transmission towers for 1.27 billion, extending its investments offshore.

Macquarie Communications is managed by the Australian bank.

The Isle of Man is a territory of Britain in the Irish Sea. Steam Packet has an option to extend its port access agreement to 2026.

In August, Macquarie Bank said it may team up with partners to make an offer for London Stock Exchange, Europe's largest equity market.

- BLOOMBERG