Odfjell Terminals B.V. (OTBV) intends to enter into an agreement with Koole Terminals B.V. of the Netherlands (Koole) to sell its 100% ownership of Odfjell Terminals Rotterdam (OTR) and Odfjell Terminals Maritiem (OTM) for $155m net of estimated transaction costs. 

On May 8th, 2018, Odfjell SE (Odfjell) announced that Lindsay Goldberg was considering a sale of its 49% shareholding in OTBV, and made the announcement that it would consider tagging along on an outright sale of OTBV subsidiaries OTR and OTM. Lindsay Goldberg’s exit process for the remaining shareholding in OTBV is still ongoing.

Koole will compensate OTBV for all permitted equity injections made in 2018 until closing. The intended transaction would at closing reduce Odfjell Terminals net debt with around $35m. Odfjell SE’s share of the proceeds at closing is expected to amount to around $100m and result in an estimated book loss for Odfjell SE of around $100m. Any sale will be subject to the employee consultation procedures being finalised, finalising documentation and to customary regulatory approvals.

Kristian Mørch, Chief Executive Officer of Odfjell said: “This is a landmark transaction for us. We have been working hard to restore profitability at OTR during the past years, and the terminal is now ready for the next step of development, which will require significant investments. We are therefore pleased to have Koole as the potential purchaser. Koole has great ambitions for the terminal, and we are confident in their ability to realise the value potential this business represents. Following a sale of OTR, Odfjell will have a network of seven tank terminals worldwide. We remain committed to our tank terminals business and will allocate capital for growth of Odfjell Terminals in the years to come.”

Frank Erkelens, Chief Executive Officer of Odfjell Terminals said: “OTR is well positioned to continue with building a successful future on the fundaments of its strategic location in the Port of Rotterdam, its unique capabilities, its top quartile safety performance and its strong organisation. On behalf of Odfjell Terminals, I pay tribute to all the stakeholders of OTR for their continuous support. Odfjell Terminals remains focused on providing best in class safety and service performance to our respected customers across our terminal network.”

For more information, visit: www.odfjell.com

2nd July 2018

2nd July 2018