A Danish consortium comprising private equity firm Axcel, and pension funds PFA and PKA has taken control of Danish Ship Finance, one of the leading names in European ship finance.
“The Board of Directors and the Large Shareholders view Axcel’s, PFA’s and PKA’s ownership as a highly satisfactory solution ensuring a continued strong Danish ship finance institution backed by well capitalized owners and potential for controlled global growth in co-operation with Danish and international shipping companies,” the bank said in a release today.
Peter Lybecker, chairman of the board of directors, commented: “The large shareholders have in co-operation with the company conducted a broad and thorough strategic review and have had dialogues with multiple interested parties. In my view, Danish Ship Finance will in Axcel, PFA and PKA, obtain a strong ownership able to support the company and accelerate the continued development of the ship finance business in the interest of its employees, customers and business partners.”
The new owners have stated they wish to continue developing Danish Ship Finance in accordance with the current strategy and led by the current executive management. Changes among the shareholder-elected board members are expected.
The new owners will acquire Danish Ship Finance through a holding company, AXPP ShareCo, which is owned equally between them. The large shareholders and the consortium have agreed a price per share of DKK 14.166667 corresponding to a value of all shares in Danish Ship Finance of DKK4,722bn ($710m). In addition to equity, the acquisition is financed by supplementary capital from PFA and PKA and bank financing.
In connection with the transaction, the other A-shareholders in Danish Ship Finance will receive an offer to sell each of their A-shares at the same price and terms as agreed with the large shareholders. The offer to the other A-shareholders is expected to be submitted during the first half of October 2016.
The Danish Maritime Fund is the owner of all the B-shares in Danish Ship Finance, which constitutes 10% of the total share capital in the company. The Danish Maritime Fund says it has a special relation with Danish Ship Finance and therefore wishes to be a part of the future ownership of Danish Ship Finance in conjunction with the new owners.
Danish Ship Finance manages a loan portfolio of approximately DKK43bn, secured by pledges on about 450 vessels.
Commenting on the news, Splash finance columnist Dagfinn Lunde said today: “Danish Ship Finance is among the 20 biggest and very stable and trustworthy as a financier.”
