THE group controlling Tees and Hartlepool ports will float on the stock market after being sold for £172.5m.

PD Ports Group will float on the Alternative Investment Market on Monday following its sale by Japanese owner Nikko Principal Investments Limited.

Taking into account net debt of £282.5m, the deal is worth £455m.

The group was bought by PD Ports plc, a group set up to make the purchase.

Stockbroker Collins Stewart, which was responsible for Northumbrian Water's successful stock exchange debut last September, is behind the company.

Former PD Ports Group chief executive Graham Roberts will lead PD Ports plc.

He said: "This is an extremely exciting moment for PD Ports. We are coming to the market at a time when our recent investments in container facilities and property development, particularly at Hartlepool, should start to deliver growth.

"Our core business continues to generate stable profits and strong cashflow.

"Nikko has been an excellent supportive owner of the business since 2000, and we now look forward to driving PD Ports' next stage of development and to delivering value to our new shareholders."

PD Ports has funded the acquisition with a mix of ordinary shares and convertible bonds.

Nikko will keep a 29.9 per cent stake in PD Ports.

Group earnings before interest, taxes, depreciation, and amortization for the year to March 31 was £42.5m, up from £40.8m last year, on turnover of £161.1m.

The PD Ports plc board will be made up of David Harding (non-executive chairman), Graham Roberts (group chief executive), Paul Daffern (finance director), Alan Kelsey (non-executive director), James Sutcliffe (non-executive director) and James Wilding (non-executive director).

Anthony Platts, assistant director of stockbroker Wise Speke, said: "The potential for the ports of Tees and Hartlepool is tremendous and is a crucial element in putting the Tees Valley area on the map as the place to do business.

"The fact that the business is being floated on the stock market will mean that staff within the business will once again be in a position to hold a stake in the prosperity of their company.