Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 2-3i Infrastructure, AMP Capital to buy shipping firm Esvagt

Published 08/07/2015, 12:58 am
© Reuters.  UPDATE 2-3i Infrastructure, AMP Capital to buy shipping firm Esvagt
NWG
-
SIEGn
-
MAERSKb
-
VWS
-
AMP
-
3IN
-
RY
-

(Adds financing details)

COPENHAGEN, July 7 (Reuters) - Investment firms 3i Infrastructure 3IN.L and AMP Capital AMP.AX have agreed to buy Danish shipping company Esvagt for 4.1 billion Danish crowns ($607 million), aiming to tap growing demand for servicing offshore wind farms.

Esvagt is being sold by Danish shipping and oil group A.P. Moller-Maersk MAERSKb.CO , which controls 75 percent of the shares, and a group of individual investors who own the rest.

It has a fleet of 43 vessels and is a provider of offshore safety and support primarily in and around the North Sea and the Barents Sea.

The buyout will be backed with 3 billion crowns of leveraged loans in a financing deal led by Royal Bank of Canada RY.TO and Royal Bank of Scotland RBS.L , banking sources said.

The financing comprises around 2 billion crowns of term loans and 1 billion crowns of undrawn facilities, both denominated in Danish, Norwegian and Swedish crowns as well as sterling, the sources said.

The loans will be sold to investors in a syndication process in the coming weeks, the sources added.

Esvagt made a record profit of 252 million crowns in 2014 on turnover of 943 million crowns.

Since 2010, the company has been servicing the Bligh Bank Offshore Wind Farm for Danish wind turbine maker Vestas VWS.CO .

This year, it has put two specially built service vessels for offshore wind turbine farms into operation for Siemens Wind Power SIEGn.DE .

A.P. Moller-Maersk has offloaded a string of companies and stakes in subsidiaries in recent years to focus on container shipping, oil, port operations and drilling. It has booked more than $11 billion from divestments since 2009.

($1 = 6.7689 Danish crowns)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.