Odfjell SE has reached an agreement with Lindsay Goldberg to acquire their indirect 24.5 percent shareholding in Odfjell Terminals Korea at a purchase price of $19 million.
Following the transaction, Odfjell SE will control 50 percent of OTK’s shareholding alongside the long-term, local JV partner KPIC.
OTK generated an annual EBITDA of $2.2 million and net result of $0.7 million in FY2019 (based on 25.5 percent Odfjell SE shareholding). The acquisition will be funded through available proceeds within the Odfjell Terminals structure, and closing is expected to take place within December 2020.
Commenting on the transaction, Kristian Mørch, CEO of Odfjell, said: “OTK is a high-quality terminal and represents a good fit with our strategy for Odfjell’s terminal division.
“As such, this is another milestone in completing the restructuring of our terminal portfolio and our strategy to focus on chemical terminals where we can harvest synergies with Odfjell Tankers or have another angle for further value creation by Odfjell.
“The acquisition will have a positive effect on results, return and cash flow for Odfjell SE, and also ensure a simple and efficient governance structure for OTK.”
For more information visit www.odfjell.com