Norwegian shipping and tank terminal company Odfjell SE has reached an agreement with Lindsay Goldberg (LG) to acquire their indirect 24.5% shareholding in Odfjell Terminals Korea (OTK) for $19 million.
Following the transaction, Odfjell SE will control 50% 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% 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.
“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,” Kristian Mørch, CEO of Odfjell, said.
“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.”
Odfjell Terminals’ Korean site is located in Ulsan, with a total storage capacity of 313,710 cbm. It has been operated since 2002, serving as a distribution hub for China, Taiwan, Japan and Korea.
OTK makes use of six berths with a maximum of 14.3 meter water depth, with one available to accommodate vessels up to 100,000 dwt.
The post Odfjell to buy Lindsay Goldberg’s stake in Korea terminal appeared first on Offshore Energy.