Odfjell SE has reached an agreement to by the 24.5% stake in Odfjell Terminals Korea (OTK) owned by US private equity firm Lindsay Goldberg (LG) for US$19 million (€15.6 million).
The transaction is expected to be completed by the end of 2020, following which, Odfjell will control 50% of OTK’s shareholding. It will be funded through available proceeds within Odfjell Terminals. The remaining 50% is owned by the local joint venture partner Korea Petrochemical Industry Company (KPIC).
OTK is located in Ulsan in South Korea and has a total storage capacity of 313,710 m3 in 85 tanks, ranging in size from 550 – 9,990 m3. It stores alcohols, chemicals, acids, palm fat and lubricant oils. It has 17 truck bays and four shipping berths, two of which are deepwater berths.
‘We are pleased to have reached an agreement with LG to acquire their stake in OTK. OTK is a high-quality terminal and represents a good fit with our strategy for Odfjell’s terminal division. As such, this is another milestone in completing the restructuring of our terminal portfolio and 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. The acquisition will have a positive effect on results, return and cash flow for Odfjell SE, and also ensure a simple and efficient governance structure for OTK,’ says Kristian Mørch, CEO of Odfjell.
