Odfjell SE announced that Odfjell Terminals B.V. (OTBV), the joint venture holding company that owns and operates substantially all of Odfjell's tank terminals worldwide, has entered into an agreement to sell its 29.75 percent indirect ownership in Oiltanking Odfjell Terminals & Co. LLC (OOT) in Oman for around $130 million.
The transaction will result in a net gain of approximately $90 million for OTBV. Closing of the transaction is subject to customary regulatory approval.
Kristian Mørch, CEO of Odfjell and Chairman of Odfjell Terminals B.V., said, “We are pleased to have concluded on the sale of our Oman terminal at what we believe is a very attractive valuation and is a testimony to the strength and quality of the investments made in Oman since 2008.”
Frank Erkelens, CEO of Odfjell Terminals B.V. commented, “We appreciate the cooperation we have had with our good partners in Oman, and wish them a successful future further developing the full potential of the terminal. This divestment is in line with our strategy to focus on the terminals where we have managerial control of the assets and to further invest in growth opportunities in our core markets, such as Houston and Rotterdam.”
Odfjell Terminals B.V. is a joint venture between Odfjell SE (51 percent) and Lindsay Goldberg (49 percent), which currently owns ten terminals worldwide with a combined storage capacity of 4.8 million cubic meters. Odfjell Terminals' key activities include storage and distillation of bulk liquid products.