May 6, 2013 [SeeNews] - Norwegian shipping group Odfjell SE and US private equity firm Lindsay Goldberg LLC have sealed final transaction agreements for their joint venture (JV) to include substantially the whole tank terminal business of Odfjell, the latter said today.
As previously reported, the parties signed a letter of intent to expand the tank terminal JV in December 2012.
Under the deal, Lindsay Goldberg will buy a 49% stake in Odfjell Terminals AS (OTAS), the holding company for Odfjell’s tank terminals activities, in exchange of its 49% in the JV with Odfjell.
In addition, the US company will invest some USD 219.2 million (EUR 167.1m) in cash in OTAS to further its growth worldwide and in China particularly, as well as to support the recovery and improvement project for Odfjell Terminals Rotterdam.
As part of the transaction, the Norwegian company will be repaid certain shareholder loans totalling USD 39 million and is anticipated to post a book gain of between USD 25 million and USD 30 million.
Following the transaction, expected to close by end-September, OTAS will fully own all assets in the JV, while Odfjell and Lindsay Goldberg will control 51% and 49% of the holding company, respectively.
