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Tuesday, August 20, 2019

Maritime Logistics Professional

July 16, 2019

Odfjell Sells Stake in Chinese Terminal

Pic: Odfjell SE

Pic: Odfjell SE

Norwegian shipping and tank terminal company Odfjell SE has finalized the sale of its indirect 55% equity stake in Odfjell Terminals Jiangyin (OTJ), China.

Reference is made to the stock exchange announcement of May 8th, 2018, in which Odfjell SE (Odfjell) announced that Lindsay Goldberg (LG) is considering a sale of its 49% shareholding in Odfjell Terminals BV.

After LG completed the sales of its shareholdings in the US and European terminals, LG is now in the process of selling its shareholding in the Asian terminals. Connected with this, Odfjell has decided to tag along on LG’s sale of its indirect shareholding in Odfjell Terminals (Jiangyin).

Odfjell is pleased to announce that Odfjell Terminals Asia Holding Pte. Ltd. has today finalized the sale of its indirect 55% equity interest in Odfjell Terminals (Jiangyin) Co., Ltd. to Yangzijiang Shipbuilding (Holdings) Ltd. for a price of approximately USD 46 million.

The transaction will result in a capital gain expected to be booked in 3Q, and net proceeds to Odfjell estimated at USD 21 million.

Kristian Mørch, CEO of Odfjell, said: "We are pleased to have concluded the sale of our Jiangyin terminal and its jetty at what we believe is a fair valuation that is a testimony to the strength and quality of the investments made since 2007. This divestment is in line with our strategy to grow and focus on chemical terminals in locations where we can harvest synergies with Odfjell Tankers."

Kristian added: "We appreciate the cooperation we have had with our partner Jiangsu Garson Gas Co., Ltd. in China, and wish them and their new partner Yangzijiang Shipbuilding a successful future in further developing the full potential of the terminal and its jetty.”