Odfjell sells its share in Singapore tank terminal
Odfjell Terminals B.V. has entered into an agreement with a fund managed by Macquarie Infrastructure and Real Assets to sell its 50% ownership in Oiltanking Odfjell Terminal Singapore Pte Ltd.
Odfjell Terminals B.V. is a joint venture between Odfjell SE (51%) and Lindsay Goldberg (49%), which currently owns nine terminals worldwide with a combined storage capacity of 3.5 million cubic meters.
The price of around USD 300 million implies an enterprise value of around USD330 million for Odfjell Terminals B.V.’s share in the Singapore terminal.
The transaction will result in a net gain for Odfjell SE of approximately USD135 million, Odfjell SE’s share. Closing of the transaction is subject to customary regulatory approval and is expected during the fourth quarter of 2017.
“We are pleased to have concluded on the sale of our Singapore terminal at what we believe is a very attractive valuation and a testimony to the strength and quality of the investments made in Singapore since 2001,” said Kristian Mørch, CEO of Odfjell and chairman of Odfjell Terminals B.V.
“We appreciate the cooperation we have had with our good partner Oiltanking in Singapore, and wish them and their new partner Macquarie Infrastructure and Real Assets a successful future in further developing the full potential of the terminal,” said Frank Erkelens, CEO of Odfjell Terminals B.V. “This divestment is in line with our strategy to focus on the terminals where we have managerial control of the assets and to further invest in growth opportunities in our core markets, such as Houston and Rotterdam.”