Odfjell SE sells its ownership share of terminal in Dalian, China

11 May 2020

Reference is made to the stock exchange announcement of May 8, 2018, in which Odfjell SE (Odfjell) announced that Lindsay Goldberg (LG) is considering a sale of its 49% shareholding in Odfjell Terminals BV and further with reference to the stock exchange announcement of July 16, 2019, announcing that LG is in the process of selling its shareholding in the Asian terminals.

Odfjell is pleased to announce that Odfjell Terminals (China) Pte. Ltd. (OTC) has today completed a sale of its 50% shareholding of Odfjell Terminals (Dalian) Co Ltd. (OTD) to VTTI Terminals I B.V., a subsidiary of VTTI group, for a total cash consideration of USD 59 million. OTC is indirectly owned 51% by Odfjell and 49% by LG. For Odfjell, the transaction will result in a net cash gain of USD 27 million and an equity gain of USD 13 million to be reported in 2Q20.

Kristian Morch, CEO of Odfjell said:
"The sale of OTD represents another step in the restructuring of our terminal portfolio and is in line with 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. We are very proud of what we, together with our joint venture partner Dalian Port Authority (PDA), have accomplished in Dalian over the course of more than twenty years. OTD has become a reference within the Chinese terminal industry as a specialty chemicals terminal with an excellent QHSE and operational track record, outstanding customer relations, and by generating stable returns for its shareholders. We believe this transaction is a testament to the quality and resilience of OTD and we are very pleased that PDA now has gained another strong, long-term partner in VTTI."

The Odfjell Group is one of the leading players in the global market for seaborne transportation and storage of chemicals and other specialty bulk liquids. The Odfjell fleet comprises of approx. 80+ ships, which trade both globally and regionally.

The tank terminal division consists of five tank terminals and is part of a network of another 12 tank terminals partly owned by related parties. The tank terminals are strategically located at selected international shipping hubs.

The Odfjell Group’s headquarters are in Bergen, Norway, and the Group has offices in 14 locations around the world. Odfjell employs around 2300 staff and posted annual gross revenue of USD 872 million in 2019. Read more on Odfjell.com.

Image by Odfjell.

Odfjell press release