Following a recent deal to sell its oil business, Danish shipping giant Maersk has now reached an agreement to sell its Maersk Tankers unit.
The company said on Wednesday it would sell the shares in Maersk Tankers to APMH Invest A/S (APMHI) for USD 1,171 mill. on a debt and cash-free basis.
APMHI is a 100% owned subsidiary of A.P. Møller Holding A/S who is the controlling shareholder of Maersk.
The purchase price will be adjusted in two scenarios:
— if the tanker markets improve based on a fleet value accretion. The adjustment is capped at USD 200 mill., can be exercised once and expires 31st December 2019.
— if APMHI sells on vessels at a higher price than the purchase price and higher than an agreed hurdle rate (On-sale Adjustment). The On-sale Adjustment expires 30th June 2019 or if the
Maersk has been informed that APMHI is planning to subsequently establish an ownership consortium for Maersk Tankers’ fleet with Mitsui & Co. Ltd. This syndication will not generate an On-sale Adjustment.
Maersk Tankers will continue trading as “Maersk Tankers” and will continue using the Maersk’s seven-pointed star-logo as part of its brand.
As the transaction is between related parties, fairness opinions have been obtained from Morgan Stanley & Co. Int. Plc. and DNB Bank ASA. The conclusions from these fairness opinions confirm that the transaction value including the agreed price adjustment mechanism is fair from a financial point of view, the company said.
The Maersk management has recommended and the independent board members have agreed, both based on the conclusions of the fairness opinions, to sell Maersk Tankers at the agreed terms and conditions.
Closing is expected to take place early October 2017. Closing of the transaction is not subject to merger control approvals.
Proceeds from the disposal will be used by Maersk to reduce debt.
The recent sale of its subsidiary Maersk Oil to Total, and now the sale of Maersk Tankers is a part of the company’s strategy announced almost exactly a year ago.
The Danish conglomerate in September 2016 announced a decision to split the company into two divisions: one focused on shipping and logistics, the other on oil and gas sector.
Announcing the split, the company said it would focus on transportation and logistics, while working to find a solution, a sale among others, for the energy related businesses.
The company then revealed that Transport & Logistics would consist of Maersk Line, APM Terminals, Damco, Svitzer and Maersk Container Industry based on a one company structure with multiple brands.
The Energy Division was formed of Maersk Oil, Maersk Drilling, Maersk Supply Service and Maersk Tankers.