Odfjell SE sells its ownership of terminal in Dalian, China
Odfjell has announced that Odfjell Terminals (China) Pte. Ltd (OTC) has completed a sale of its 50% shareholding of Odfjell Terminals (Dalian) Co Ltd. (OTD) to VTTI Terminals I BV, a subsidiary of VTTI group, for a total cash consideration of USD 59 million.
OTC is indirectly owned 51% by Odfjell and 49% by Lindsay Goldberg (LG). For Odfjell, the transaction will result in a net cash gain of USD 27 million and an equity gain of USD 13 million to be reported in 2Q20.
“The sale of OTD represents another step in the restructuring of our terminal portfolio and is in line with 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,” said Kristian Mørch, CEO, Odfjell SE.
The sale is in reference to the stock exchange announcement of May 8th 2018, in which Odfjell SE announced that Lindsay Goldberg (LG) is considering a sale of its 49% shareholding in Odfjell Terminals BV and further with reference to the stock exchange announcement of July 16th, 2019, announcing that LG is in the process of selling its shareholding in the Asian terminals.
Odfjell SE is the ultimate parent company of the Odfjell Group, consisting of Odfjell Tankers, Odfjell Terminals and other subsidiaries/joint ventures. Odfjell SE is a public limited company traded on Oslo Stock Exchange.
“We are very proud of what we, together with our joint venture partner Dalian Port Authority (PDA), have accomplished in Dalian over the course of more than 20 years,” stated Mr Mørch. “OTD has become a reference within the Chinese terminal industry as a specialty chemicals terminal with an excellent QHSE and operational track record, outstanding customer relations, and by generating stable returns for its shareholders. We believe this transaction is a testament to the quality and resilience of OTD and we are very pleased that PDA now has gained another strong, long-term partner in VTTI.”