Norway’s Odfjell has reached an agreement with American private equity firm Lindsay Goldberg (LG) to acquire its indirect 24.5% shareholding in Odfjell Terminals Korea (OTK).
Odfjell is paying $19m for the sake, and following the transaction will control 50% of OTK alongside local JV partner KPIC.
Kristian Mørch, CEO of Odfjell, said: “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.”
The acquisition is expected to close before the end of the year.