Baltic Oil Terminals has entered into an agreement for the acquisition of Haahr Tank-Lager A/S for $9.9 (€7.3) million in cash.
Haahr Tank operates a 160,000 m3 refined oils terminal, located at Aabenraa in Denmark.
The Acquisition is being financed through the issue by Dan-Balt Terminals, a 100% subsidiary of the Company, of Secured Fixed Rate Loan Notes to the value of $11.0 million.
A valuation report, commissioned by Baltic, gives a new build cost of $42m. The purchase price reflects that, under the terms of the acquisition, the vendor Haahr Group will retain the use of 35,000 m3of capacity at the terminal for the next five years.
The Board of Baltic believe that the acquisition of Haahr Tank represents a substantial step forward in the fulfilment of its strategy and that through the implementation of their operational model, already in place in Rotterdam:
Its location, roughly midway between Baltic’s Kaliningrad and Europort businesses, will provide enormous flexibility to Baltic’s customer base
Haahr Tank’s two berths and ability to host larger oil tankers than in Kaliningrad will facilitate large volumes through the terminal as customers seek to bulk up shipments
Haahr Tank’s existing facilities requires little or no capital expenditure
Longer term, there is space on the site for the expansion of capacity by approximately 20%
The Haah Tank terminal, which will operate as Dan-Balt Tank Lager A/S, has heated and non-heated products tanks with a total capacity of 160,000 m3 of storage and two berths, capable of accommodating ships up to Panamax and facilitating the discharging and loading of oil products on a simultaneous basis.
The terminal also has two road tanker loading and mixing bays and currently supplies heating oil loading and mixing services to several large operators as well as a heated molasses tank for product delivered in by vessel and taken out by road tanker.