NORWAY's Odfjell SE has announced that Odfjell Terminals (China) Pte Ltd (OTC) has completed a sale of its 50 per cent of its shareholding in Dalian's Odfjell Terminals to VTTI Terminals I BV, a subsidiary of Rotterdam's VTTI group, for a total cash consideration of US$59 million.
OTC is 51 per cent indirectly owned by Odfjell and49 per cent by New York private equity firm Lindsay Goldberg (LG). For Odfjell, the transaction will result in a net cash gain of $27 million and an equity gain of $13 million.
"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 Odfjell CEO Kristian Morch.
"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. 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," Mr Morch said.
The Odfjell Group is in the global market for seaborne transportation and storage of chemicals and other specialty bulk liquids. The Odfjell fleet comprises of 80 ships. Odfjell employs 2,300 staff and posts annual revenues of $872 million.