OSLO, NORWAY: Odfjell Gas Shipowning AS, a subsidiary 100% owned by Odfjell SE, entered into a transaction agreement with BW Epic Kosan Ltd. (BWEK) for the sale of two LPG/Ethylene carriers, Bow Guardian and Bow Gallant, both built in Korea in 2008.
These two vessels have the capability to carry gases such as LPG, propylene, ammonia, and ethylene, and will join BWEK 14 other similar controlled vessels of 8,000-10,000 cbm, including three sister vessels from the same shipyard.
The purchase price will be settled partly in cash, to be used for the full repayment of mortgaged loans on the vessels, and partly by the issuance of 6,889,611 freely transferable shares in BWEK. Following the transaction, Odfjell will own 4.3% of the shares in BWEK.
The transaction is expected to close prior to October 31, 2021. Pursuant to the transaction agreement, an additional consideration of up to 362,611 shares in BWEK can be received subject to certain conditions being fulfilled during an 18 -month period from delivery of the vessels.
The transaction concludes Odfjell SE’s exit from the gas segment and the shareholding in BWEK will be considered as a non-strategic financial investment. The transaction is expected to generate a minor positive contribution to Odfjell’s P&L and will also have a positive impact on the company’s balance sheet.
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. 90 ships, which trade both globally and regionally. The tank terminal division consists of five tank terminals and is part of a network of another 11 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 939 million in 2020. www.odfjell.com